KARACHI, July 24: After having recovered over 500 points during the last couple of sessions, the KSE 100-share index on Tuesday underwent a technical correction shedding 107 points but larger decline was resisted thanks to the presence of support at the dips.

The weakness of the leading base shares notably MCB and some oil giants, which fell in unison in the absence of foreign buying, weighed against the underlying sentiment although there was no panic associated with the disturbing news from the tribal areas.

But some others attributed the sell-off to the rollover week amid reports that some of the leading brokerage houses were in the process of clearing their outstanding dues.

The opening was, however, on the higher side owing to spillover of the overnight pent-up demand and the index rose by 103 points to hit the session’s peak level of 13,762.77 points. But thereafter, bears dominated the scene and it finished at the session’s lowest level of 13,552.90 points, off 107.46 points. The KSE 30-share index fell by 210.76 points at 16,268.50 points.

While overvalued shares mostly remained under pressure and fell. The low-priced ones came in for active support and maintained their upward drive amid active trading signalling that all was not that bad with the broader market, said a leading broker.

The market should have extended its overnight run-up followed by reports that the US has no plans to hit the targets inside tribal areas but investors seem to be preoccupied with some market’s technical demands and ignored it.

“However, reports of clashes between the security forces and the militants and killings did worry investors as some of their weaker links indulged in selling,” analysts said.

They said corporate reports were fairly encouraging and could boost sentiment here and there but negative external factors including political tensions halted aggressive buying for obvious reasons.

That is perhaps why the market rises on the strength of selective buying only to fall the very next day as the same set of investors play hide-and-seek game, they added.But as far as market’s basic fundamentals are concerned they are terribly bullish but they need sanity on the political front to manifest in a bigger way, some others said.

Minus signs dominated the list under the lead of Siemens Pakistan and Colgate Pakistan, off by Rs82.50 and Rs25.50, followed by IGI Insurance, New Jubilee Insurance, MCB, Pakistan Tobacco, National Refinery, PSO, Attock Petroleum, Shell Gas, Shell Pakistan, Sanofi-Aventis, Fazal Textiles and Packages, which suffered fall ranging from Rs6 to Rs14.

Leading gainers were led by JS & Co and Arif Habib Ltd rose by Rs31.20 and Rs13.15 respectively. They were followed by Arif Habib Securities, Attock Refinery, Exide Pakistan, Pakistan Cables, Security Papers, Sapphire Fibres, Adamjee Insurance and Mari Gas, up by Rs5.25 to Rs12.05.

Trading volume rose to 311m shares from the previous 275m shares as losers held a fair lead over the gainers at 197 to 127, with 32 shares holding on to the last levels.

WorldCall Telecom topped the list of actives, up by 40 paisa at Rs20.40 on 26m shares followed by Fauji Cement, steady by 55 paisa at Rs21.80 on 21m shares, Lucky Cement, lower 40 paisa at Rs122.80 on 21m shares and Arif Habib Securities, higher by Rs6.20 at Rs142.50 on 18m shares.

Telecard, firm by Re1 at Rs14.20 on 13m shares, TRG Pakistan, easy 25 paisa at Rs14.20 on 12m shares and Bankislami Pak, up by Re1 at Rs14.95 on 10m shares.

Other actives included Javed Omer, off Rs11.35 on 11m shares followed by SaudiPak Bank, steady by five paisa on 11m shares and Bosicor Pakistan, off 50 paisa on 10m shares.

DEFAULTER COS: Trading activity on this counter was relatively slow as leading investors kept to the sidelines. Some of the actives came in for modest covering purchases under the lead of Nimir Chemicals, steady by five paisa at Rs4.45 on 0.537m shares followed by Zeal-Pak Cement, firm by 15 paisa at Rs6 on 0.166m shares and Japan Power, unchanged at Rs4.45 on 0.155m shares.