After opening, the stock market plunged in deep red with worst ever decline in its history during intra-day trading due to panic selling over declining oil prices in the international market. However, in later hours the market recovered almost half of its losses on the back of healthy buying mainly in cement sector stocks.

"Market halt" procedure has been introduced by the Securities and Exchange Commission of Pakistan (SECP) in PSX regulations in December of 2019. The action triggers when the KSE-30 index moves 4 percent either way and remains there for 5 consecutive minutes.

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.

PSX remains at the forefront of the capital market to provide a fair, transparent and efficient marketplace for the benefit of investors, issuers and all stakeholders.

Copyright Business Recorder, 2020