Dhaka, Dec. 6 -- The benchmark index of the Dhaka Stock Exchange (DSE) tumbled this week, snapping a two-week gaining streak, as the move to liquidate nine scam-tainted non-bank financial institutions (NBFIs) unnerved investors.

The Bangladesh Bank officially approved the liquidation this week as the these NBFIs -- plagued by years of irregularities, loan fraud and severe liquidity shortages during the previous regime -failed to repay depositors.

Market analysts said investor sentiment was already fragile following the merger of five banks, which had left retail investors on edge. Now, the fresh liquidation move added to the unease, prompting a wave of selling pressure across the market.

Eight of the nine NBFIs selected for liquidation...