Dhaka stocks end lower

Stocks ended lower yesterday on Dhaka bourse on profit taking as analysts said slump on global markets apparently did not hurt the local exchange.
“Today's fall is a local market phenomenon. Its relation with the global stock market is little due to small amount of foreign investment here,” said Saiful Islam, an analyst at Equity Partners Limited that facilitates deals here in favour of foreign investors.
Global stocks sank for a second day Tuesday amid worries that a weak US economy could derail growth worldwide.
The net foreign portfolio investment on the Dhaka Stock Exchange stood eight times higher to Tk 8.9 billion in 2007 due to mainly to growing interests of European and US fund mangers, according to DSE.
Higher fall in the shares of Jamuna Oil and UCBL led the downturn.
The benchmark DGEN or DSE General Index shed 22.71 points or 0.77 percent to 2926.00. The DSI or All-Share Price Index was down 19.42 points or 0.78 percent to 2464.09. The DSE-20, an index reflects blue chip shares, dropped 18.46 points or 0.77 percent to 2361.44.
Yawer Sayeed, who helps manage over Tk 1.0 billion in funds at AIMS of Bangladesh, attributed the downturn to profit taking in the issues with higher market capitalisation.
Sayeed argued Bangladesh remains unhurt by the global market turmoil as there is no cross-border listing facility for local companies and investors in Bangladesh cannot take part in trading at foreign stock exchanges.
“That's the reason, we are immune from the global stock market turmoil,” he said.
Turnover declined to Tk 1.46 billion from transaction of 65,79,875 shares. Turnover was Tk 1.65 billion Monday.
UCBL ended 6.56 percent lower at Tk 3751.75. AB Bank, second top share on the turnover board based on value, slipped 0.57 percent to Tk 2789.00. Islami Bank and IFIC Bank added extra pace to the fall.
BRAC Bank finished at 2.17 percent to Tk 1504.25, down 2.17 percent from the previous day.
Power stocks however closed higher led by gains in DESCO shares. DESCO was up 5.07 percent to Tk 1112.75.
Jamuna Oil, the newly listed state-run petroleum marketing company, slumped 11.89 percent to Tk 365 due to profit taking.