KARACHI, May 16: The share market remained under pressure on Friday as investors liquidated their long positions on the blue chips counters amid growing fears of political confrontation among the contenders of power on some core issues and doubts about the economic recovery.

An idea of widespread decline may well be had from the fact that at one stage the KSE 100-share index breached through the 14,200-barrier at 14,182.10, but thanks to late short-covering in some of the leading base shares it managed to trim the losses.

However, the uncertain political outlook was also well-reflected as the index finally closed down by 246.98 points or 1.7 per cent at 14,232.89 as compared to 14,479.87 a day as some leading base shares remained under pressure owing to weekend selling.

The free float 30-share index also suffered sharp decline of 373.06 points at 16,882.59.

The weakness of the banking sector after lowering of their foreign currency debt rating by the Standard and Poor’s (S&P) to B from the B+ halted its recent upward drive under the lead of GDR-based MCB Bank, followed by other leading ones.

Oil shares should have reacted to reports of a fresh record rise in crude oil prices to $127 per barrel, but weak economic indicators did not allow consolidation forces to come into full play, analysts said.

“The reports of setting up of an Economic Council with Shaukat Tareen, a well-known banker, as its convener to chalk out plans for economic recovery has failed to arrest the weekend sell-off,” they said.

“As developing situation on the political front is unfolding progressively, the chances of peace among the major contenders of power appear to be a remote possibility despite positive lip servicing,” they said. “This bearish factor could drag the market further down in the coming weeks,” they added.

Instances of strong selective support were, however, not wanting as a section of investors led by some institutional traders covered positions on those counters that ensure higher capital gains.

Minus signs dominated the list under the lead of Nestle Pakistan and JS & Co, off by Rs50 and Rs28.65, followed by JS Global, National Bank, Attock Refinery, Pakistan Refinery, Habib Bank, Attock Petroleum, Shell Pakistan Mari Gas, Packages, National Foods and EFU General & Co, which suffered fall ranging from Rs6 to Rs26.60.

Wyeth Pakistan and Siemens Pakistan were among the top gainers, up by Rs100 and Rs29.10. Other good gainers included Bolan Casting, Mehmood Textiles, Murree Brewery, Moon Pakistan, Ghani Glass and Treet Corporation, up by Rs3.28 to Rs11.32.

Turnover figure showed a modest rise at 169m shares from the previous 168m shares but losers held a strong lead over the gainers at 221 to 96, with 28 shares holding on to the last levels.Pak Premier Fund led the list of actives, easy by eight paisa at Rs13.12 on 17m shares followed by Arif Habib Securities, off Rs2.60 at Rs190.50 on 11m shares, Bank Alfalah, easy by 56 paisa at Rs55.30 on 10m shares, Engro Chemical, off Rs5.65 at Rs315 on 7m shares, D.G. Khan Cement, off Rs2.67 at Rs93.98 on 6m shares, Honda Atlas Cars, up by 47 paisa at Rs59 also on 6m shares and National Bank, off Rs6.65 at Rs210.10 on 4m shares.

Other actives were led by Genertech, up by Re1 at Rs4.18 on 6m shares, followed by Southern Electric, higher also by Re1 at Rs7.98 on 5m shares and Nishat Mills, off Rs3.90 at Rs112.

FORWARD COUNTER: Engro Chemical came in for renewed selling and led the list of actives, sharply lower by Rs6.10 at Rs316.50 on 7m shares followed by MCB Bank, off Rs7 at Rs371 on 4m shares and D.G. Khan Cement, lower by Rs3.70 at Rs93.40 on 3m shares.