KARACHI- Karachi Stock Exchange has showed another lackluster performance during the outgoing week, as the KSE index declined by 266 points or 2.2 per cent on week on week basis and close weekend at 11,695 points. The decision of SECP of restoring 5 per cent upper and lower locks on last trading day of the week however was like a breath of fresh air for those investors, who wish to exit the stock market. All eyes are now on formation of Rs50 billion equity market fund because after the reversal of recent amendments in trading rules to the old mechanism has increased the concerns of investors. They keep on asking the worrying question that as to how it could be possible to arrange such a huge amount at a short notice to provide much needed liquidity and safer exit to smaller investors. Although downward lower lock limit of 1 per cent has prompted record decline in trading volume shares but on the other hand it managed to avert the market from collapse. Its may be noted that institutions will devise a strategy for the formation of minimum Rs50bn Equity Market Fund. All modalities regarding this fund would be discussed in a meeting on July 16. If an agreement is reached, the fund is likely to be launched over the next two weeks. After reverting  back to 5 per cent lower lock limit,if the SECP fails to implement the check and balance measures regarding entrance and exit points of  institutions that brings investment on equity market fund, the turmoil in the stock market will deepen, analysts said. If the Rs50bn support fund is launched, it may act as a catalyst for the stock market, analysts said. Similarly, the volumes remained dull both in ready and futures market as average daily volumes during the week in the ready market stood at only 24.8mn shares while 1.4mn shares were recorded in future market. Analysts attributed the bearish sentiment prevailed over the last two weeks to the  lower lock limit of 1 percent which restricted investor exit,  bomb blasts in Islamabad and Karachi and volatile forex rates which saw Pakistani rupee fluctuates against USD, ranging between Rs70-73 on closing basis). Moreover, foreign investment also took a flight the week as the FIPI declined by USD2.5mn WoW by Thursday July 10, 2008. Analysts were of the view that recent reversal of previous amendments in trading rules would boost up the trading volumes of shares and bring relief to the trapped investors. The market capitalization dropped by Rs.56 billion on week on week basis and stood at 3.634 trillion at the weekend.  The free float KSE-30 index dived by 3.2pc to 447 points and close weekend at 13,405 points. Moreover, it has now been 11 trading sessions in which market remained dull while continuing with its slow meltdown. CFS investment dropped by 1.64% WoW (Rs 503.3mn) to close at Rs30.2bn while CFS rates rose slightly by 55bps WoW to settle at 15.05%. Dull activity at the KSE, in addition to increasing risk perception kept CFS investment low and liquidity concerns held rates marginally high. Top-5 scrips by CFS investments were AHSL, POL, NBP, AICL, and DGKC whose cumulative share accounted for 45% of the total CFS investment.