Philippine Long Distance Telephone Co. and SM Prime Holdings Inc. rose the most in at least two weeks in Manila after a newspaper report, citing the Asian Development Bank, said the nation won’t sink into recession in 2009.

SM Prime, the biggest local shopping mall operator, rose 4.4 percent, heading for its largest increase in two weeks.    

The Philippines won’t go into recession next year, countering expectations of some businessmen, the Philippine Daily Inquirer reported today.

The government’s decision to increase spending and drop its target of balancing the budget by 2010 will help soften the impact of slowing global growth, the report said, citing ADB Country Director Neeraj Jain.

‘A Philippine recession outlook may not be warranted,” Ron Rodrigo, head of research at DBP Daiwa Securities SMBC Philippines Inc., said in Manila.

‘It disregards the plan by the government to spur economic activity and the behavior of Filipino consumers who continue to spend even in times of difficulty.”

Philippine businessmen expect a recession, increased layoffs and tougher access to credit in 2009, the Philippine Daily Inquirer reported Nov. 12, citing a survey done by the Makati Business Club., a group of the nation’s top executives.

SM Prime, which has a network of 33 Philippine malls, climbed to 7.20 pesos, heading for its biggest gain since Oct. 31. 

Ayala Corp., which owns the biggest local developer, gained 5 percent to 210 pesos while Megaworld Corp., the No. 3 builder by value, climbed 3.2 percent to 65 centavos.