KARACHI, Dec 30: Stocks on Thursday suffered a mild technical correction as some of the leading shares came in for active profit-selling at the inflated levels but bulk of it was well-absorbed at the dips.

The opening was fairly encouraging on active follow-up support, pushing the index to day's high of 6,186, late unloading in some of the pivotals allowed it to finish well below the recent highs towards the close.

The KSE 100-share index finished reacted, after early having risen by 56 points, off 16.74 points at 6,107.93 as compared to 6,123.67 a day earlier. "I think the free float from the carryover market has made its debut in a highly overbought market", analysts said "but whether or not the year-end financial buying has dried up will set its future market direction".

The general perception is that the market could shed about 200 points before resuming its upward drive again on the strength of higher corporate earnings. Earlier in the morning session, the KSE 100-share index maintained its upward drive and added another 56 points to the overnight gains on strong buying amid an actively traded session.

"Bulls are out to close the year above the index level of 6,200", some analysts predict "the last session of this year on Friday could spring many a surprises but mostly pleasant".

Bulk of the buying again remained centred around the heavy weights of the index, PTCL and OGDC, which took the entire market along with them to new highs both in terms of index level and volume figure.

Both are said to be under squeeze from the foreign buying interest and for good reasons too, PTCL being more vocal than the OGDC as Dubai-based investor is inclined to grab the floating stock in patches with the small investors well before its sell-off date is announced, some brokers said.

The market's astounding rise to new highs each session is beyond the comprehension of the even well-informed sources but there is a loud whispering in the rings that foreign buying has already made its debut on selected counters.

The central bank's latest report warning about the increase in inflation to around eight per cent despite higher GDP projections during the current year is not a positive indicator for the market on a long-term basis, brokers said.

"But worries most to the leading analysts was the highly overbought position of the market as both investment and badla rates are at record highs", "There could be massive upsets even on the blue chip counters after market opts to meet its technical demands".

Leading gainers were led by Lakson Tobacco, Dawood Hercules, Noon Sugar, AKD Securities, which rose ranging from Rs7.20 to Rs17.05 followed by EFU Life, Arif Habib Securities, Siemens Pakistan, and some others, up by Rs5 to Rs5.05. Losers were led by Bhanero Textiles, Engro Chemical, Clariant Pakistan, Security Papers, Atlas Honda and Shezan International, off Rs4.50 to Rs5.70.

Trading volume soared to 654m shares from the previous 595m shares but losers forced a modest edge over the gainers at 223 to 197, with 42 shares holding on to the last levels.

PTCL again led the list of actives, up 30 paisa at Rs44.10 on 109m shares followed by OGDC, off 75 paisa at Rs72.20 on 81m shares, Lucky Cement, easy 75 paisa at Rs40.45 on 64m shares, Fauji Fertilizer Bin Qasim, off 55 paisa at Rs30 on 30m shares.

Other actives were led by National Bank, up by 70 paisa on 29m shares, Pakistan Oilfields, firm 65 paisa on 28m shares, Fauji Cement, off 70 paisa on 25m shares, Nishat Mills, lower Rs1.70 on 19m shares and MCB, off 75 paisa on 13m shares.

FORWARD COUNTER: PPL came in for active support and rose 70 paisa at Rs138.90 on 42m shares followed by PTCL, easy five paisa at Rs44.45 on 15m shares, Engro Chemical, currently under hostile-taker bid, off Rs4.85 at Rs130 on 9m shares.