KARACHI, Jan 8: Stocks on Wednesday underwent a mild correction as investors took profits at the inflated levels on the blue chip counters but the underlying sentiment remained uppishly inclined.

No one has two opinions about the market’s highly overbought condition but stray selling was triggered by fears of hasty unloading by some of the big ones owing to higher badla business and rates.

The KSE 100-share index saw a fractional decline of 1.82 points at 2,778.16 as compared to 2,779.78 a day earlier, reflecting the relative weakness of leading base shares, including PTCL and Hub-Power.

The bulls seem to be a bit hesitant to hold the index above the 2,800 points level as was reflected by the last two sessions’ abortive bids followed by bear onslaught, brokers said. It has breached twice through this crucial level but failed to sustain it, although resistance and will to fight is there.

“I think it is in for technical correction of about 100 points in phases owing to higher badla business of around Rs13bn and badla rates in some of the pivotals, notably Hub-Power above 30 per cent,” predicts a leading analyst, hoping “there may not be a major shakeout at this stage.”

Despite widespread selling at the inflated levels on the blue chip counters, the market was not without some special features, notably strong buying in the energy sector on the perception of higher world prices in case the US attacks Iraq and a substantial increase in sales.

An idea of price flare-up may well be had from the fact that for the third session in a row, Shell Pakistan has breached through its circuit breaker, rising by Rs80, a massive capital gain on a 10-rupee share in three sessions.

There is a strong rumour that it could pause after having hit the its next target of Rs500, one broker said, adding “the target is not that ambitious in the backdrop of future oil price outlook.”

After having risen sharply during the new year trading, the market went through a modest technical correction at the highly inflated levels, most of the blue chips being the prominent losers.

Leading gainers were led by Attock Refinery, Javed Omer Vohra, Pakistan Refinery and Unilever Pakistan, up by Rs3.75 to Rs5. They were followed by 13th ICP, Central Insurance, IGI Insurance, New Jubilee Insurance, National Refinery, Pakistan Oilfields and Fauji Fertiliser, up Rs2 to Rs3.35.

Losers included EFU General, Sarhad Cigarettes, Security Papers, Bata Pakistan, National Foods, Clover Pakistan, Sitara Chemicals, Millat Tractors and Mitchell’s Fruits, off Rs2 to Rs3.75.

Trading volume shrank to 297m shares from 483m shares a day earlier as investors were not inclined to sell. Losers held a comfortable lead over the gainers at 178 to 129, with 63 shares holding on to the last levels.

Hub-Power led the list of actives, off 45 paisa at Rs41.65 on 122m shares followed by PSO, up 45 paisa at Rs229.40 on 38m shares, PTCL, lower 25 paisa at Rs25.05 on 31m shares, Fauji Fertiliser, up Rs3.35 at Rs83.15 on 11m shares and Dewan Salman, higher 20 paisa at Rs15.50 also on 11m shares.

Other actives included Pakistan Oilfields, higher by Rs2 on 9m shares, Sui Northern Gas, easy 20 paisa on 8m shares, FFC-Jordan Fertiliser, unchanged on 7m shares, First Prudential Modaraba, higher by Rs5 on 5m shares and ICI Pakistan, off 95 paisa at Rs56.85 also on 5m shares.

CLEARED LIST: Barring PSO and Fauji Fertiliser, which rose by 70 paisa and Rs3.25 at Rs232.20 and Rs83.65, respectively, on 13m and 1.769m shares, others fell fractionally on selling.