Dhaka, May 31 -- The recent directive by Bangladesh Bank (BB) barring 18 listed banks from disbursing dividends has sent shockwaves through the capital market, sparking a sharp and sustained downturn in investor sentiment. The move, aimed at enforcing financial discipline, has had immediate and far-reaching consequences, particularly for the banking sector - the largest component of the Dhaka Stock Exchange (DSE).
Banking stocks led the market decline, with sharp price falls prompting panic selling across other sectors and dragging down the overall market index. Data from the DSE show that between May 23 and May 29, the benchmark index fell by a total of 189 points - 16 on Thursday, 39 on Saturday, 10 on Sunday, 17 on Monday, 41 on Tuesday...