The market index extended a losing streak and closed the month on Wednesday down 106.62 points or 1.59 percent to 6,583.65.

The decline was influenced by the drop in the United States' markets amid worries that the Federal Reserve will continue with its aggressive policy tightening.

Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar pointed out that the main index also breached the 6,600 support level amid a lack of positive catalysts.

"If the market does not return above 6,600, then the next support would be at the 6,400 level," she said.

Healthy turnover

Despite the decline, the market remained strong with a net value turnover of P8.59 billion, higher than this month's average of P6.08 billion.

All sectors, however, were in the red. SM Prime Holdings, Inc. gained the most by 2.57 percent while JG Summit Inc. was at the bottom, which dropped 5.19 percent.

More recently, New York Federal Reserve president John Williams called for a somewhat restrictive policy to slow demand.

Ahead of Friday's closely watched August jobs data, more Fed speeches are slated.

Chicago PMI and ADP employment data are also due out in the morning.

Meanwhile, oil prices steeply plunged yesterday on inflation fears and brewing unrest in Iraq. Brent crude futures fell 5.5 percent to $99.31 per barrel.

On the other hand, the US West Texas Intermediate crude shed 5.5 percent to settle at $91.64/bbl.