The Tunis Stock Exchange announced this Wednesday that, following a drop of more than 3% in the TUNINDEX, the Exchange triggered the quotation interruption mechanism, in accordance with the provisions of Article 3.7 of the Trading Floor Regulations.
“As such, trading is suspended for one hour. Trading will resume at 10:16 a.m.,” adds the Tunis Stock Exchange.
For reference, in case of a sharp decline, the exchange triggers a quotation interruption procedure as follows:
Level 1: When the main index breaches a 3% downside threshold, the exchange suspends trading for one hour. During the entire suspension period, order cancellations are allowed.
Level 2: When the main index breaches a 5% downside threshold, the exchange suspends the trading session for the rest of the day. The closing price will then be the last quoted price.
According to Amen Invest, this mechanism acts as an essential technical buffer to protect the market from emotional excess by avoiding impulsive panic moves; it provides all investors with the necessary perspective to analyze the flows calmly.
It also helps to guarantee an orderly market: it allows the order books to adjust under optimal safety conditions, confirming the maturity and robustness of the infrastructure of our financial market.
“This market breathing does not reflect in any way a deterioration in the financial health of listed companies. It is the ideal moment to sort through, focus on long-term fundamentals (visibility of cash flows, balance-sheet strength, dividend yield) and position oneself strategically on stocks offering the best prospects for structural growth,” Amen Invest stated in a market outlook note published on July 28.
