KARACHI, Jan 8: Stocks on Thursday experienced a modest correction after a sustained run-up followed by profit-selling in leading shares caused by negative reports about the final bidding date for the privatization of controlling shares of PSO to one of the shortlisted bidders.

However, the correction was not that aggressive as to cause major dents in the prevailing price structure as bulk of the selling was absorbed in the backdrop of positive fundamentals, both on the corporate and political fronts.

Energy shares received massive battering in sympathy with PSO, while auto shares remained in strong demand followed by reports of higher earnings. Press reports that Kuwait Petroleum Company (KPC), one of the three shortlisted companies eligible for final bid to buy the controlling shares of Pakistan State Oil, is reconsidering other options for final bidding triggered near-panic selling in it, brokers said.

The KSE 100-share index widely fluctuated either-way under the cross-current of both positive and negative news, touching the day's peak at 4,588 and the lowest at 4,545.44 before closing at 4,564.02, with a fractional fall of 1.21 points.

The market fears about delay in PSO final bidding stemmed from the reported comments by the Kuwait Supreme Council that "further study into possible investment in Pakistan's retail fuel market is needed."

Investors, who had build-up long positions in it ahead of its proposed sell-off and predictions of further price appreciation, sold in part their holding, fearing further decline in its share value.

Being one of the leading market trend-setters, negative news about its immediate sell-off, took other leading energy shares also in the minus column. It fell by Rs6.75.

However, there is no possibility of an extended fall as investors' confidence has been reinforced by the Saarc summit and Islamabad declaration aiming at strengthening economic cooperation among its member countries to give needed boost to intra-regional trade.

All was not bad with the broader market as a number of leading shares managed to finish with an extended gains, including some leading bank, auto, cement, and chemical shares.

Leading shares, notably PSO, Hub-Power, PTCL, Sui Northern Gas, Engro Chemical and Pakistan Oilfields on the other hand remained under pressure and ended modestly lower amid active trading.

Leading gainers were led by Jahangir Siddiqui Bank, PICIC, Sana Industries, Dawood Cotton, International Industries, Fazal Textiles, Atlas Honda, Honda Atlas, Pak-Suzuki Motors, Nestle MilkPak and Indus Motors, which posted gains ranging from Rs3.25 to Rs8.

Losers were led by Siemens Pakistan, off Rs20 followed by Shell Pakistan, Dawood Hercules, Mari Gas, Tariq Glass and Pakistan Services, which suffered fall ranging from Rs1.50 to Rs6.35. Trading volume fell to 240m shares from the previous 266m shares, but gainers maintained a strong lead over the losers at 202 to 123, with 58 shares holding on to the last levels.

PTCL topped the list of most actives, easy 10 paisa at Rs36.90 on 30m shares followed by Dewan Motors, up 80 paisa at Rs34.30 on 24m shares, ICP SEMF, off 95 paisa at Rs49.30 on 20m shares, PSO, sharply lower by Rs6.75 at Rs281.35 on 12m shares and MCB, up 95 paisa at Rs53.40 on 10m shares.

Other actives were led by Hub-Power, lower 30 paisa on 9m shares, Lucky Cement, easy also by the same amount also on 9m shares, Engro Chemical, off 75 paisa on 8m shares, Maple Leaf Cement, lower 45 paisa also on 8m shares and FF Bin Qasim, easy 20 paisa on 7m shares.

FORWARD COUNTER: OGDCL came in for modest selling and fell by 20 paisa at Rs52.85 on 52m shares. PSO followed it, sharply lower by Rs5.65 at Rs282.85 on 5m shares, WorldCall, off 80 paisa at Rs14.85 on 3m shares, PTCL, easy 10 paisa at Rs37 on 2m shares and Hub-Power, off 30 paisa at Rs38.75 also on 2m shares.