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~~~~~((#))016005000g-Stocks & Shares (World)

Dhaka stocks end lower in thin trade on war impact

DHAKA: Dhaka stocks closed lower on Monday as investors feared that a lingering war in Iraq could divert international aid earmarked for Bangladesh and hurt the local economy, brokers said.

The Dhaka Stock Exchange General Index (DGEN) lost 0.78 percent or 5.93 points to 750.84. Losers led gainers by 80 to 42 with 34 stocks unchanged, the DSE said in a statement.

The index has lost nearly 11.25 percent since January 1, 2003.

"The market was very nervous over a lingering Iraq war. The concern of the Iraq war affecting Bangladesh economy has dampened the confidence of investors," said Abul kalam Azad of SAR Securities.

Finance Minister M. Saifur Rahman on Sunday said the Gulf war had posed a threat to the future of Bangladesh economy.

"The Iraq war will affect several donors forcing them to cut assistance to a country like Bangladesh," official BSS news agency quoted Rahman as telling to reporters.

Bangladesh receives around $1.5 billion in annual aid from western rich countries and Japan to finance its development and imports.

Arab Bangladesh Bank, a joint venture private sector bank, lost 6.29 percent to 204.75 taka.

Square Pharmaceuticals, a major drug producer and exporter, fell 0.82 percent to 1,177.75 taka.

Monday's overall turnover totalled 27.4 million taka ($470,000), down by 2.6 million taka traded on Sunday.

A total of 818,701 shares changed hands against 1.5 million previously.-Reuters