Friday, November 25, 2011

Trading at CSE halted for 30 minitues

 An error trade in Distilleries Company of Sri Lanka shares triggered a 30 minitue market halt on the Colombo stock exchange Friday morning, the bourse said in statement.
The market halt was imposed at 11.00 a.m. after the bourse's Milanka price index dropped over 5% from the previous market day's close. 
The stock exchange said the MPI had dropped by over five percent owing to an error trade relating to 1,200 shares of Distilleries Company at 100 rupees a share.

The closing price of Distilleries Thursday was 149.60 rupees.

The CSE said broker firm responsible for the error trade had notified the bourse of the error and that it will be conducting an inquiry into it.

Stocks recovered after the trading resumed but were still weaker in afternoon trade. Colombo stocks had fallen 2.7 percent on Thursday. 
"A market halt is used internationally by stock exchanges as a procedure for volatility management," the CSE statement said.

"Under such procedures trading may be halted temporarily or under extreme circumstances, a market may be closed prior to normal close of the trading session."

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