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Pakistan Stock Exchange (PSX) Thursday triggered a market halt during intra-day trading at 02:13pm for 45 minutes.

This was the second time in a week when the PSX triggered a market halt. The market halt is triggered as a standard protocol for risk management purposes.

"Market halt" procedure has been introduced by PSX as a frontline regulator in line with international best practices and approved by the SECP in PSX regulations in December 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.

The 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.

After a market halt of 45 minutes, triggered at 02:13pm, the stock market reopened and functioned as per norm.

Copyright Business Recorder, 2020

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