The Securities and Exchange Commission of Pakistan has introduced a post-market trading session following the country's reclassification as an emerging market by U.S.-based index provided MSCI Inc., the Dawn reported May 30.
Investors will be allowed to trade at a stock's closing price and to execute trades through market on close orders. The price of the stocks will be determined on the basis of volume weighted average price.
Due to the expected high volume during closing session, the commission also mandated that the closing price for all shares will be determined on the last two hours of the regular trading session, instead of the last 30 minutes, as with the current practice. The change will be effective from May 26 to June 2 only.
Further, the respective indexes of the Pakistan Stock Exchange will be calculated based on the closing prices of shares under the revised rules for May 26 to June 2. It will revert back to the current practice after June 2.
Meanwhile, the central bank has extended the timings for the real-time gross settlement system until 3:30 p.m. local time on the first week of Ramadan.
The new measures are expected to help ensure transparency and smooth trading on the bourse.