After only a day of gains, the Philippine Stock Exchange Index declined anew by 93.18 points to 5,741.07, 3.26 percent lower than Thursday's close.

Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar said the negative sentiments of the investors were due to the growing recession fears.

"Negative cues from the performance of the United States markets overnight affected the local bourse as well," she said.

Alviar noted that the US treasury yields continue to rise with the Federal Reserve remaining hawkish.

"At home, foreign portfolio investments' net outflow in August and the agricultural damages caused by typhoon "Karding" also adversely affected the sentiment. We are seeing the support at 5,700 while the resistance is pegged at the 6,000 level."

Fed remains key

Investors weighed concerns over future rate-hiking decisions from the US Federal Reserves and the impact on the market. Personal income and spending and consumer spending are on close watch.

On the local data front, hot money outflows of $86 million in August, a reversal of $11.51 million recorded last during the same month last year, Regina Capital Development Corp. managing director Luis Limlingan said.

Oil prices tumbled as traders awaited clarity on potential Organization of the Petroleum Exporting-Plus cuts next week and as the dollar eased off 20-year highs. Brent crude futures closed at $88.49 per barrel, while the US crude futures settled at $81.23/bbl (-1.1 percent).