SM Prime Holdings Inc., the largest Philippine mall operator, rose to the highest in almost seven months in Manila after its parent said first-quarter retail sales were “robust” and “consumer spending is holding up.”

SM Prime gained 1.2 percent to 8.50 pesos at the noon close local time, its highest since Sept. 29. It was the third-biggest gainer in the main Philippine Stock Exchange Index, which fell 0.2 percent.

“SM Prime is a pure play on Philippine consumer spending,” said Carl Stanley Sy, an analyst at Citiseconline.com in Manila, who rates the stock “buy.” “Consumer spending will hold or even expand this year as evidenced in previous economic downturns.”

SM Investments Corp. Chairwoman Teresita Sy, no relation to the analyst, said yesterday first-quarter sales were “robust” and that consumer spending is holding up even as the economy slows. Economic growth slowed to a range of 2.1 percent and 3.1 percent in the first quarter, the government said April 20.

SM Prime malls are home to most supermarkets and department stores of parent SM Investments, the nation’s biggest retailer. About 20 percent of Philippine consumer spending passes through those malls and stores, according to Macquarie Group Ltd. strategist Alex Pomento.

“A lot of consumer spending in the country is on non-discretionary items and this benefits SM Prime,” Citisec’s Sy said. He forecast sales at SM Prime’s existing malls open for more than a year will probably grow 5 percent this year.

SM Prime, which is planning to add three malls to its 33 in the country, has advanced 16 percent this month, compared with a 4.1 percent gain in the main Philippine Stock Exchange Index.

The number of SM Prime shares that changed hands today increased 43 percent to 3.92 million, the stock’s highest volume this week.