KARACHI, Sept 1: Stocks on Thursday suffered a mild correction, as a section of leading investors took profits at inflated levels, although the broader market performed well under the lead of refineries on active short-covering at lower levels.

A massive activity of 127m shares in OGDC, one of the leading index shares having weightage of 21 per cent in it, was the session’s notable feature as investors played on both sides, pushing its price to the day’s highest level at Rs117.20 and the lowest at Rs113.05, before the last closing of Rs114.10.

After earlier steadily rising to 7,871.33, the KSE 100-share index later fell by 27.65 points and closed at 7,769.21, as compared to 7,796.86 on Wednesday, as leading base shares came in for profit-selling by some of the punters.

“I will not call it a technical correction as the market’s inherent strength is intact,” says a leading analyst. “It is literally a consolidation phase through which a bull market has to pass to establish it viability.”

The market may pass unloading here and there motivated by profit-hunting. There is no reason to believe that the post-badla run-up is overdone.

The profit-selling was general as a section of leading investors sold to push prices of selected shares lower and then to cover positions at the lower levels to realize capital gains.

Energy shares, which responded bullishly to local oil price hike, failed to provide the needed push to the broader market owing perhaps to its negative fallout on the economy, notably the industrial sector. Pakistan Oilfields, Pakistan Petroleum, and OGDC were leading among them, having negative impact on the index level.

Bank shares, under the lead of the Bank of Punjab and National Bank, were leading among the losers, but there were buyers at the falling prices. MCB on the other hand did not follow their lead and maintained its upward drive on dividend-related fresh buying.

Although leading shares remained under pressure, some of them, notably National Refinery and Pakistan Refinery, managed to rise further on the perception of inventory gains after the Wednesday’s POL prices hike. They were followed by International Industries, Ferozsons Lab, PNSC, International Industries, Attock Refinery, Abbott Lab, and Berger Paints, which posted gains ranging from Rs4.50 to Rs7.10.

IGI Insurance and Treet Corporation were leading among the losers, off Rs10.15 and Rs14, respectively, followed by the Bank of Punjab, PSO, Pakistan Oilfields, Gatron Industries, and Artistic Denim, which suffered fall ranging from Rs4.50 to Rs6.75.

Trading volume showed a fresh fall at 388m shares from the previous 420m shares, as losers held a modest lead over gainers at 143 to 120, with 316 shares holding on to the last levels.

OGDC topped the list of actives, lower 15 paisa at Rs114.10 on 127m shares, followed by DG Khan Cement, easy five paisa at Rs62.10 on 34m shares, MCB, up Rs2.25 at Rs106.75 on 29m shares, the Bank of Punjab, off Rs2.90 at Rs96.50 on 26m shares, PTCL, off Rs1.30 at Rs65.50 on 26m shares, Pakistan Petroleum, lower 60 paisa at Rs180.60 on 24m shares and National Bank, off Rs1.50 at Rs117.50 on 22m shares.

Other actives were led by Fauji Fertilizer Bin Qasim, unchanged on 23m shares, Fauji Cement, easy five paisa on 10m shares and Pakistan Oilfields, off Rs4.50 on 8m shares.

FORWARD COUNTER: OGDC was also actively traded on the cleared list, lower 25 paisa at Rs115.25, followed by Pakistan Petroleum, up 35 paisa at Rs182.85 on 19m shares and PTCL, off Rs1.30 at Rs65.10 on 10m shares.