Stocks retreated on Friday as investors, taking their cue from Wall Street's tumble overnight, unloaded their holdings following another spike in world oil prices.
Analysts said investors have been worried about high fuel prices crimping consumer spending, thus, putting dent on companies' earnings.
"The market started weak because of Wall Street's plunge after oil prices hit a record high again yesterday," said Harry Liu, president of Summit Securities.
"The spike triggered concerns about rising inflation. The problem is not just local, but global," he added.
Oil surged above $140 a barrel before settling at $139.64 at New York trading on Thursday.
This, coupled with a downgrade in ratings on US investment banks, sent the Dow Jones industrial average down 360 points to a 21-month low of 11,453.42.
At home, the composite index fell 55.33 points or 2.2 percent to 2,466.28.
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Analysts said investors have been worried about high fuel prices crimping consumer spending, thus, putting dent on companies' earnings.
"The market started weak because of Wall Street's plunge after oil prices hit a record high again yesterday," said Harry Liu, president of Summit Securities.
"The spike triggered concerns about rising inflation. The problem is not just local, but global," he added.
Oil surged above $140 a barrel before settling at $139.64 at New York trading on Thursday.
This, coupled with a downgrade in ratings on US investment banks, sent the Dow Jones industrial average down 360 points to a 21-month low of 11,453.42.
At home, the composite index fell 55.33 points or 2.2 percent to 2,466.28.
Read the full article>>
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