KARACHI, Jan 7: Stocks on Friday suffered pruning at the highly inflated levels as a section of investors indulged in profit-selling in the current volume leaders , notably OGDC but it was absorbed at the dips enabling the market to avert a major shakeout.

A long-overdue technical correction may have crept into the overvalued shares, although bulls were not inclined to entertain bearish ideas for the time being. As a result, Nishat Mills, National Bank, MCB, Bank of Punjab posted fresh gains amid active trading.

Volume figure swelled to year's high of 808m shares, as leading shares, notably PTCL, OGDC, Fauji Fertilizer, Bin Qasim, MCB, National Bank and many others, which were currently under squeeze, fell sharply.

"It was a massive float from the carryover market, which investors had been holding on for the last couple of weeks," analysts said "whether or not it is carried over to the next week will set the market direction". But the market is still in an overbought position and needs further correction, some others said.

After fluctuating either-way amid alternate bouts of buying and selling, the KSE 100-share index finally finished around 6,318.90, off 34.37 points as compared to 6,353.27 a day earlier as some of the leading base shares eased from their previous highs.

Market capital also suffered a fall of Rs10.275bn at Rs1,757.533bn as compared to Rs1,767.808bn, reflecting the weakness of PTCL and some other pivotals. As a result, only extreme gains were pared on the overvalued counters at the highly inflated levels, although bears tried to evoke sympathetic selling from the weak-holders and short-dealers but failed.

Opinions are divided over the size of the correction. Some analysts predict a correction of 300 to 400 points before the market resumes its upward thrust to the next chart point of 7,000 index level.

Some others claim bulls are not inclined to loosen their grip on the price line even for a day as was reflected by ready absorption of all sale offers originating in part also from the big ones.

"The market may adjust its overbought position here and there but the presence of strong foreign support on some of the leading shares would continue inspire fresh buying and in turn only modest corrections", most leading analysts predict.

The next week could be very crucial for the future direction of the market as both bulls and bears are expected to redefine their futures buying strategy on the basis of corporate announcements.

"I think investors will now opt for the textile sector on the strength of their payout ratio", says a leading analyst adding "most of them still ensure fair capital gains and massive buying is expected to pick them up at the still attractively lower levels".

During the current run-up most of the leading shares had virtually reached their saturation points and needs correction or spill over of demand to other low-priced shares on the other counters.

Leading gainers were led by AKD Securities and Wyeth Pakistan, up by Rs26.35 and Rs21, respectively, while losers were led by Dawood Hercules and PSO, off Rs7.95 and Rs8.50. Others fell fractionally.

Trading volume soared to 807.589m shares as compared to 551.365m shares a day earlier as losers forced a strong lead over the gainers at 216 to 172, with 45 shares holding to the last levels.

PTCL came in for fresh massive buying, up by 30 paisa at Rs46.15 on 115m shares followed by MCB, higher by Rs2.75 at Rs68.80 on 81m shares, Bank of Punjab, firm by Rs1.50 at Rs69.75 on 79m shares, National Bank, higher by Rs6.30 at Rs90.45 on 76m shares, and D.G.Khan Cement, off Rs1.05 at Rs55.40 on 70m shares.

Other actives were led by OGDC, off Rs1.75 at Rs72.60 on 41m shares, Nishat Mills, up by Rs6.20 on 37m shares, Sui Southern Gas, off Rs1.05 on 31m shares, Pakistan Oilfields, lower Rs7.10 on 27m shares and Fauji Fertilizer Bin Qasim, easy, 50 paisa on 26m shares.

FORWARD COUNTER: PPL led the list of losers on this counter, off Rs3.95 at Rs142.45 on 32m shares, PTCL, up by 10 paisa at Rs46.25 on 18m shares, Nishat Mills, higher by Rs5.95 at Rs98.50 on 13m shares and MCB, higher by Rs2.90 at Rs69.40 on 9m shares. Others also rose amid modest activity.