KARACHI, April 20: Stocks on Tuesday suffered a mild correction as a section of investors took profits at the inflated levels but the underlying sentiment remained uppishly inclined thanks to ready absorption of all the selling offers at the dips. The KSE 100-share index shed 29 points at 5,591.66.

"It appears to be the advent of long-awaited technical correction as bears tried to tilt the price balance in their favour in an apparent abortive bid," analysts said adding "there were buyers at the lower rates."

However, at one stage, it appears that the liquidity-driven rally has run its course but by the mid-session bulls fought back after making hective covering purchases at the dips, limiting the market decline, brokers said.

The KSE 100-share index suffered a modest decline of 29 points at 5,591.66 as compared to 5,620.66 a day earlier. The mid-session low was hit at 5,556 and the high at 5,637.

Technically, the market needs a big shakeout as during the last two months sustained run-up has pushed it in a highly overbought position. But much will depend on the thinking of the financial traders who hold massive unsold positions.

Active short-covering in leading shares, notably OGDC, PTCL, Sui Northern Gas, Sui Southern Gas, Hub-Power and some others allowed the market to finish well above the day's lows. "I don't think bears could outwit bulls at this stage," says a broker. "All the basic fundamentals still point to a fresh bull-run."

The market could shed another few points in the process of consolidation but there is no possibility of big shakeout at this stage, he adds. "A cut in carryover rates and an increase in the volume did confuse some of the weakholders," some others said and "cement stocks trading at high P/E came in for active selling after the free-float from the carryover market found its way into the market."

Almost all the high-priced shares attracted selling, most of the MNCs being leading among them. BOC Pakistan, Clariant Pakistan, Aventis, Abbott Lab, Shell Pakistan and Glaxo-SKF being leading among them, falling by Rs3 to Rs10.

Other prominent losers were included Cherat Papers, Habib Insurance, Century Papers, Pakistan Oilfields, Attock Refinery, Dawood Hercules and HinoPak Motors, which suffered fall ranging from Rs2.40 to Rs8.

Although minus signs dominated the list, some of the leading shares managed to put on fresh gains under the lead of Rafhan Bestfoods, Wyeth Pakistan and Javed Omer, up by Rs18, Rs25 and Rs48.75 in that order.

Other good gainers were led by Nishat Mills, Pakistan Tobacco, PNSC, Siemens Pakistan, Al-Abbas Sugar, Janana Demalucho Textiles and Millat Tractors, which rose by Rs2.60 to Rs7. Trading volume fell further from the figure of 821m shares to 668.522m as losers maintained a strong lead over the gainers at 226 to 150, with 66 shares holding on to the last levels.

Fauji Cement topped the list of most actives, lower 15 at Rs18.10 on 105m shares followed by DG Khan Cement, 65 paisa at Rs63.30 on 73m shares Hub-Power, off 35 paisa at Rs37.90 on 70m shares, OGDC, easy 30 paisa at Rs69.40 on 61m shares and Fauji Bin Qasim Fertilizer, off 80 paisa at Rs22.40 on 35m shares.

Other actives were led by Nishat Mills, up 2.75 on 34m shares, Sui Southern Gas, higher 45 paisa on 31m shares, PTCL, lower 40 paisa on 28m shares, Lucky Cement, higher by 90 paisa on 26m shares and Chakwal Cement, up 40 paisa on 23m shares.

FORWARD COUNTER: PTCL came in for active selling and fell by 20 paisa at Rs6m shares followed by Hub-Power, easy also by the same amount on 5m shares, FF Bin Qasim, of 70 paisa at Rs22.60 also on 5m shares, Pak PTA, higher by 35 paisa at Rs19.20 on 3m shares and Sui Northern Gas, up 25 paisa at Rs71.75 also on 3m shares.

Nishat Mills on the other hand rose by Rs3 at Rs58.50 on active support at the lower level, while PSO and ICI Pakistan suffered sharp fall ranging from Rs1.75 to 2.05 at Rs283.50 and Rs88.35 respectively.

DEFAULTER COS: Unlike the previous sessions, trading on this counter was relatively slow in the absence of leading buyers. Standard Investment Bank came in for modest selling at the higher level and fell by 15 paisa at Rs9.10 on 0.142m shares. Biafo Industries followed it, off 25 paisa at Rs11.35 on 0.205m shares.

But on the other hand Bela Automotive came in for active support and rose by Rs1.20 at Rs8.10 on 0.205m shares. Others were modestly traded either-way.

DIVIDEND: Sigma Leasing, interim cash at the rate of 10 per cent and Crescent Steel and Allied Products, interim also at the rate of 10 per cent.

BOARD MEETINGS: Pakistan Refinery, Pakistan Premier Fund, Lakson Tobacco, on April 21, Dawood Cotton, Bawany Air Products, Central Insurance, Clover Pakistan, Maple Leaf Cement, Rafhan Bestfoods, on April 22.