NSE All-Share Index - Circuit Breaker Responds To A Surge Beyond 5%

NSE All-Share Index (NSE ASI) rose beyond the outset of 5%

For the first time since its introduction in 2016, a market-wide circuit breaker kicked on, Thursday, November 12, 2020, at exactly 12:55 p.m the Nigerian Stock Exchange (NSE) announced.

This was prompted by the rise in the NSE All-Share Index (NSE ASI) beyond the outset of 5% – from 33,268.36 to 34,959.39. Trading came to a halt for 30 minutes and trading orders were inactive during this time until opening at exactly 1:25 p.m.

A 10-minute intraday auction session followed after trading floor reopened.

The equities market recorded a 6.23% increase in the ASI to close at 35,342.46 points. Current market capitalization after Thursday’s rise is at N18.47 trillion.

Withdrawal or cancellation of orders was still possible during this time but not modifications of orders. Clearing, settlement, and depository operations for matched trades were unchanged by the trading the halts.

According to a statement on the NSE website, “all existing orders keyed in prior to the trading halt were re-activated and were matched upon resumption of trading”.

Trading hours ran fully until closing at 2:30 p.m.

NSE Circuit Breaker Explained

The circuit breaker is a temporary regulatory measure to control trading level on the NSE floor. When trade reaches a preset level – in this case, 5% – it triggers the circuit breaker automatically.

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