Despite the Rs 1,000 billion huge relief package announced by the government to support the economy, trading at Pakistan Stock Exchange (PSX) was suspended as KSE-30 index was low by more than five percent and was trading at 12,033-level.
The KSE-100 index also lost 1,270 points in the early hours of the session and is currently trading at 27,294 points.
The analysts have attributed the current free-fall in the market to lockdown in the country.
ALSO READ: The great big Profit survey of the COVID-19 pandemic
Following the directions of the Sindh government, the Pakistan Stock Exchange has decided to observe lesser hours of trading till the lockdown continues. The PSX started trading from 11:00am on Tuesday.
Investors remained under selling pressure due to worsening of the situation caused by an increase in the number of coronavirus cases in Pakistan, analysts said.
Market Halt
“Market halt” procedure has been introduced by SECP in PSX regulations in December of 2019. The action triggers when the KSE-30 index moves 5 % either way and remains there for five consecutive minutes. Since the scrip circuit breakers got extended to 7.50% this Monday, the index halt is now at 5%.
The objective of introducing market halt is to safeguard investors and market participants during volatile markets. During this halt, trading in all securities remains temporarily suspended in order to ensure a cooling off period and run a mark to market activity as a risk management measure.
