THE Philippine Stock Exchange index (PSEi) ended the week down by 63.33 points, or almost by 1 percent, to close at 6,315.93 as investors took profits from the preceding three-day rally amid negative sentiments from the United States.

Japhet Tantiangco, senior research analyst at Philstocks Financial Inc., Regina Capital Development Corp. Managing Director Luis Limlingan and Rizal Commercial Banking Corp. chief economist Michael Ricafort said there were also various worries over the negative spillovers of the US economy's weakening on the Philippine economy, which weighed on active investors in the local bourse. This led to investors booking profits.

"Philippine shares were sold to close the month after successive bargain-hunting sessions, as they became wary of the negative US GDP (gross domestic product) data for two successive quarters, equating to what is technically a recession. US economic growth fell by 0.9 percent in the second quarter, missing the 0.3-percent consensus estimate," Limlingan noted.

Meanwhile, Limlingan said that Bangko Sentral ng Pilipinas Governor Felipe Medalla acknowledged that the Federal Reserve's action, coupled with dimming global growth prospects, could weigh on the foreign exchange movements in emerging market economies, including the Philippines. The local monetary board will hold its fifth policy review meeting on August 18, where Medalla has already hinted at a possible 25 to 50 basis points rate hike.

Ricafort added that there were still offsetting positive factors, such as a stronger peso exchange rate, continued easing of global crude oil prices and the downward correction in other global commodity prices resulting from the relative stability of oil prices in the past three weeks staying below the $110 per barrel mark.

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In a report, The Associated Press noted that benchmark US crude gained $1.98 to $98.40 a barrel in electronic trading on the New York Mercantile Exchange. It lost 84 cents to $96.42 on Thursday.

Brent crude, on the other hand, gained $1.68 to $108.82 a barrel.

Trading improved with net value turnover registering P5.54 billion, higher than Thursday's P4.42 billion, but still below the year-to-date average of P6.32 billion.

Foreigners were net buyers with net inflows amounting to P1.97 billion.

The services led the sectors, adding 0.63 percent with holding firms lost the most, shedding 2.38 percent.

Decliners edged advancers, 116 to 74, while 50 securities remained unchanged.