KARACHI: Karachi Stock Exchange (KSE), which after a lapse of agonizing 110 days opened up with the index ‘floor’ lifted here today, failed to pick up normal trading, as the stuck up investors, despite heavy losses, appeared reluctant in selling their shares.

KSE management had clamped the KSE-100 index ‘floor’ at 9144 points for two weeks on August 27, 2008, following persistent bearish waves that had washed away the index by 40 percent, but the market struck by the liquidity crunch failed to attain stabilization.

KSE had witnessed crash in the past also, but it was mainly because of the major players and financial institutions maneuverings and manipulations of the market by sudden withdrawal of their capital, but this time all the major brokers and financial institutions were themselves in the spate of the crisis. The government had set up Rs20 billion market support fund headed by NIT for rescuing the market from the quagmire, but following the objection of the IMF, the government has announced removal of ‘floor’ without making available the promised support fund.

Some brokers from Karachi and Lahore vexed by the situation approached the Sindh and Lahore High Courts respectively for redress, but the SECP in light of the decisions decided opening up of both the markets.