By Audrey Lotechukwu
THUR, 12 NOV, 2020-theGBJournal- The Nigerian Stock Exchange (NSE) said the circuit breaker was triggered to guard against sharp market fluctuations.
The market-wide circuit breaker kicked in today, Thursday, November 12, 2020, at 12:55p.m when the NSE All-Share Index (NSE ASI) rose beyond the set threshold of 5%, triggering a 30-minute trading halt of all stocks.
This was the first time that the circuit breaker had kicked in since its introduction in 2016.
The Circuit Breaker protocol was triggered by the increase of the NSE ASI from 33,268.36 to 34,959.39. The market reopened at exactly 1:25p.m with a 10-minute intraday auction session, before resuming continuous trading till the close of the day at 2:30p.m.
The ASI ended the day 6.23% up. 65 stocks posting gains while 8 stocks declined.
During the halt of trading, no order could be placed until trading resumed. However, existing orders could be withdrawn or cancelled but could not be modified.
‘’Trading halts did not affect the clearing, settlement, and depository operations for matched trades, as these functioned as normal.’’ NSE said. ‘’Furthermore, all existing orders keyed in prior to the trading halt were re-activated and were matched upon resumption of trading.’’
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