Record crude and bullion prices ravaged the nerves of investors on Friday and a bout of panic-selling gripped the market as oil- and gold-related stocks skidded across the board in line with the local benchmark index.

Weak US retail figures and the continuously receding US dollar have added to recession worries, propelling an exodus of investments into "safe- haven" investments such as oil and gold.

Oil prices in Hong Kong are rising along with the global oil hike. (CNS)

Although the commodities rush drove gold and crude-oil prices to dizzying heights, shares in these sectors were not immune to the market malaise on the local bourse.

"All stocks are falling victim to the sell-off as investors liquidate their risky equities," Sun Hung Kai Financial Strategist Castor Pang said. He expects the selling spree to continue, as economic conditions in the US continue to worsen and the strong yen begins to batter hedge funds.

Mainland-based oil refiner, Sinopec, became one of the largest losers yesterday, as the government's cap on the company's ability to raise oil-product prices takes a toll on the company's profits. Sinopec shed 4.57 percent on Friday to HK$6.68, and analysts expect the company to plummet further.

"The rising oil prices and Sinopec's inability to pass the cost onto consumers make it a real possibility that (Sinopec) will lose profits," said Linus Yip, a strategist with First Shanghai Securities.

He said that, in the face of mounting inflation problem on the mainland, the central government will unlikely allow Sinopec to hike prices.

US crude oil prices breached the historic $110 per barrel mark for the first time on Thursday, then eased slightly to $109.95 early Friday.

Yet, even direct beneficiaries of heighten crude prices didn't escape the downward spiral. Mainland oil and natural-gas explorer, CNOOC, dipped 0.32 percent to close at HK$12.34, while PetroChina suffered the same fate, slipping 0.4 percent to end the trading day at HK$10.08.

Other than oil, worries sparked by the unrelenting slump in the US dollar had also been pushing gold to extreme highs. Spot gold was only several dollars shy of smashing the $1,000 per ounce historical record on Friday.

But the expensive bullion price does not necessarily translate into good news for gold-related stocks. Gold miners Zijin Mining and Zhaojin Mining declined 1.39 percent and 3 percent to HK$9.25 and HK$29.10, respectively, yesterday.

"The slowing US economy makes people worry that the demand for gold will dampen," said Kenny Tang, associate director of Tung Tai Securities. He added that diminishing consumer power might also hit oil-related companies.

The Hong Kong stock market fell for the second-consecutive day on Friday. The local benchmark Hang Seng Index closed 64.53 points down yesterday at 22,237.11, after shedding nearly 5 percent a day earlier.