KARACHI, Dec 5: Stocks on Tuesday remained in a bullish frame of mind and closed with an extended gain on active buying in leading oil shares aided by rumours of strong foreign buying at the current lower levels but turnover figure failed to expand in the absence of leading sellers.

Analysts said the weakness of the leading bank shares followed by the central bank governor’s warning to take action against those bank managements, which did not enhance rate of return on investor deposits, limited the rally to blue chips in the oil and cement sectors.

The KSE 100-share index posted fresh gain of 134.16 points or 1.29 per cent at 10,550.16 as compared to 10,416 a day earlier as leading base shares, notably OGDC, Pakistan Oilfields and Pakistan Petroleum rose sharply higher. The KSE 30-share index also rose by 171.30 points at 13,392.47.

Among index heavy weights, National Bank remained under pressure on banking spread issue and central bank’s governor warning on low rates of return on deposits.

“It was a judicious blend of both local and foreign buying in the oil shares at the current lows, including the massively mauled OGDC, victim of lower GDS price, which lured investors back into the market,” analysts said.

The presence of foreign buying in the oil giants around the current levels and their financial positions ahead of board meetings possibly could not be ruled out, floor brokers said.

However, low daily volumes reflects that general investor is still in two minds and is not fully participating in the trading apparently awaiting the market to settle down, they said.

“With revised risk management system in place, I foresee positive market direction in future, another analyst said “the market is still in oversold position and could attract a lot of short-covering during the next couple of weeks.”

The year-end short-covering by way of portfolio adjustments is yet to make its debut and that significantly change the market outlook before the year is out, some others said.

Callmate Telips, which has been in strong demand ahead of higher final cash dividend and bonus shares at 20 per cent and 30 per cent respectively, and had progressively risen to Rs101.95 from Rs78, fell to close lower by Rs5.05 at Rs98.90.

Plus signs again dominated the list under the lead of Fateh Textiles and Nestle Pakistan, Attock Petroleum, and Pakistan Oilfields, up by Rs19 and 24.95. They were followed by Lakson Tobacco, Shell Gas, Gillette Pakistan, IGI Insurance, Treet Corporation, Abbott Lab, Pakistan Petroleum, Jahangir Siddiqui Fund, Pakistan Refinery and ,up by Rs.4.50 to 11.

Callmate Telips and Central Insurance fell by Rs5.05 and 5.80 respectively, followed by Soneri Bank, Fazal Textiles, Bolan Casting, Shaheen Insurace, Shell Pakistan, Millat Tractors, and AKD Securities, off Rs3 to 4.90.

Trading volume rose to 165m shares from the previous 125m shares as gainers maintained a strong lead over the losers at 182 to 129, with 41 shares holding on to the last levels.

Pakistan Oilfields topped the list of actives, up Rs13.90 at Rs367.90 on 15m shares, followed by OGDC, higher by Rs2.90 at Rs122 also on 15m shares, PICIC, firm by Rs1.05 at Rs75.25 on 12m shares, National Bank, off 1.80 at Rs263.20 on 9m shares, Bank of Punjab, higher by Rs1.10 at Rs104.10 on 6m shares and Pakistan Petroleum, up Rs7.60 at Rs243.50 also on 6m shares.

Other actives were led by WorldCall, steady by 20 paisa on 7m shares, Telecard, up one rupee also on 7m shares, and Fauji Fertiliser Bin Qasim, higher by Rs1.10 on 6m shares.

FORWARD COUNTER: National Bank came in for active selling and was quoted lower by Rs2.45 at Rs264.35 on 8m shares followed by OGDC, up Rs3 at Rs121 on 6m shares and Pakistan Oilfields, higher by 14.70 at Rs369.90 on 5m shares.