Dhaka, June 1 -- The recent directive from Bangladesh Bank (BB) prohibiting 18 listed banks from disbursing dividends has sent shockwaves through the capital market, triggering a significant downturn in investor sentiment.
The New Nation on Saturday reported that this move, ostensibly aimed at enforcing financial discipline, has had immediate and far-reaching consequences, particularly for the banking sector, which constitutes the largest component of the Dhaka Stock Exchange (DSE).
The impact of this directive has been stark. Banking stocks led the market decline, with sharp price falls prompting panic selling across various sectors and dragging down the overall market index.
Between May 23 and May 29, the benchmark index plummeted by 1...