KARACHI, Aug 8: Stocks on Tuesday suffered mild pruning at the inflated levels, what the analysts called technical correction, but there were buyers at the dips which limited losses on the blue chip counters.

After a sustained run-up during the last couple of sessions, the market took a technical breather on profit-selling and passed through a consolidation phase before rebounding on the strength of higher corporate announcements. Analysts said the best is yet to come in the form of payouts from some of the leading banks and cement companies.

The KSE 100-share index finished with a modest fall of 18.35 points at 10,828.39 as compared to 10,846.74 after having touched the session’s low and high at 10,908.94 and 10,797.92 respectively.

Higher dividend by PSO totalling cash 340 per cent and 300 cash and 25 per cent bonus shares by Shell Pakistani has already played their role in sustaining the index level beyond 10,000 points, the upcoming reports from Askari Bank, Faysal Bank and Bank Alfalah could push it well above the 11,000, they added.

However, Tuesday’s technical correction was overdue as the KSE 100-share index has risen by about 500 points during the last couple of sessions including Friday and needed stray pruning that came in the form of profit-selling, some others said.

“The dividend season is not yet over,” a leading stock analyst Ashraf Zakria said, adding, “bank and cement sectors are in the line and could keep the buying interest on the higher side”.

Faisal Abbas, a prominent stock analyst, fears a massive shakeout after the buying euphoria linked to financial results for the year ended June 30, 2006, fades.

But lower levels, notably on the blue chip counters, could keep the market in a positive mood around the index level of 10,000 or slightly above, he added.

Leading bank and oil shares, including National Bank and MCB and Pakistan Petroleum and Pakistan Oilfields remained in active demand and rose further higher but OGDC and PTCL failed to sustain the current run-up on stray selling.

National Refinery and Attock Petroleum were leading among the gainers, up by Rs14.50 and 16.25. They were followed by Attock Refinery, Adamjee Insurance, MCB, Honda Atlas, Rafhan Bestfoods, AKD Securities and Pakistan Refinery, up by Rs4.15 to Rs12.15.

Prominent losers were led by Siemens Pakistan and Wyeth Pakistan, off Rs45 and Rs75 respectively. Nestle Pakistan, Indus Motors, Arif Habib Securities, Fazal Textiles, Shell Pakistan, Pak-Suzuki Motors, Dawood Hercules, Pakistan Hotels and Colgate Pakistan followed them and ended lower by Rs5 to Rs10.

Trading volume further shrank to 215m shares from the previous 240m shares as gainers trailed far behind the losers at 186 to 121, with 32 shares holding on to the last levels.

PTCL led the list of actives, lower 75 paisa at Rs46.35 on 30m shares followed by Bank of Punjab, up by Rs2.15 at Rs89.40 on 20m shares, OGDC, easy by Rs1.15 at Rs145.45, Pakistan Petroleum, higher by Rs3.35 on 16m shares, MCB, up Rs4.20 at Rs239.50 on 10m shares, National Bank, firm by 30 paisa at Rs237.85 on 9m shares and Pakistan Oilfields, higher by Rs3.85 at Rs376.90 also on 9m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, lower 15 paisa on 7m shares, D.G. Khan Cement, off Rs1.40 on 6m shares and Telecard, lower 30 paisa also on 6m shares.

FORWARD COUNTER: PTCL also came in for active selling on this counter and was marked down by 35 paisa at Rs46.80 on 6m shares followed by Pakistan Petroleum, higher by Rs3.20 at Rs263.95 also on 6m shares and Pakistan Oilfields, up by Rs3.70 at Rs379.70 on 4m shares.

Bank of Punjab followed them, higher by Rs2.75 at Rs90.25 on 4m shares and OGDC, lower by 75 paisa at Rs146.75 also on 4m shares. Others were modestly traded.

DEFAULTER COS: Active two-way trading was witnessed as some of the under-valued shares came in for modest support and under the lead of Caravan Fabrics and Pangrio Sugar, up by five paisa and 65 paisa at Rs0.80 and Rs10.05 on 0.125m and 0.227m shares respectively.

Crescent Standard Bank followed them, lower by 30 paisa at Rs4.85 on 0.117m shares.

DIVIDEND: Golden Arrow Selected Stock, cash 10 per cent, PICIC Investment Fund and PICIC Growth Fund, cash 10 per cent each.