SM Prime Holdings Inc. fell to its lowest in more than two years on concerns consumer spending will be hurt by rising jobless claims in the U.S., the Philippines’ biggest source of remittances from workers abroad.

SM Prime dropped 7.9 percent to 5.80 pesos in Manila trading, its lowest close since June 2006. Jollibee Foods Corp., the biggest local fast-food company, sank 8.2 percent to 33.50 pesos, the biggest loser on the Philippine Stock Exchange Index.

“The outlook is gaining that eventually consumer spending will slow as remittances weaken from a global recession,” said Peter Lee, a senior investment officer at Manila-based IGC Securities Inc. “Consumer companies can see a slowdown in sales because we are a consumption-driven economy.”

U.S. jobless claims neared a 26-year high in the week ended Nov. 15 while an index of leading economic indicators fell for a third time in four months, indicating a deepening recession.

The U.S. is the largest buyer of Philippine exports and home to the biggest population of overseas Filipinos.

Remittances make up 10 percent of the US$ 144 billion Philippine economy while exports contribute 40 percent.

SM Prime, which will have 33 shopping malls nationwide by yearend, may post its first decline in same-store sales in 14 years in 2009 on prospects of a Philippine recession, Macquarie Group Ltd. analyst Alex Pomento said earlier this month when he downgraded the stock to “neutral” from “outperform.”

Sales of SM Prime will be “almost flat” at 17.9 billion pesos (US$ 359 million) in 2009, compared with an average growth 15 percent from 2002 to 2007, Pomento said in a note today.

“The flat revenue is premised on higher vacancies as some tenants are likely to close shop due to weak consumer spending, particularly for discretionary products,” he said.

SM Prime was the second-biggest loser today in the Philippine Stock Exchange Index, which fell the most in almost four weeks. The measure lost 4.2 percent, its most since Oct. 27.