SM Investments Corp., Philippine billionaire Henry Sy’s holding company, fell for the fifth day in Manila trading, its longest losing streak in two months, after Macquarie Group Ltd. cut the stock’s price target by a third on a lower profit outlook.

SM declined 2.3 percent to 170 pesos at the noon close local time, rounding out a five-day, 9.6 percent slump.

It’s the stock’s longest losing streak since the seven-day slump ended Sept. 16.  The stock’s 12-month share price target was lowered to 229 pesos from 337.50 pesos by Macquarie analyst Alex Pomento in a note today.

Pomento cut his 2008 profit forecast for the company by 10 percent to 14 billion pesos (US$ 280 million) and reduced his 2009 estimate by 10 percent to 15 billion pesos. 
‘We have cut our earnings outlook to reflect slower economic growth,” said Manila-based Pomento, who kept his rating on the stock at ‘outperform.” 

The US$ 144 billion Philippine economy may shrink in the first half of 2009 as the worst financial crisis since the Great Depression cuts demand for the nation’s goods and services, government economist Augusto Santos said yesterday.

Exports and funds sent home by overseas Filipinos make up half of the Philippine economy.

Still, given SM’s position as the nation’s largest department store and grocery operator, its shares may give investors a better return than the main stock index, Pomento said.

The Philippine Stock Exchange Index fell 4.2 percent today, taking its loss this week to 11 percent.

SM has a network of 93 retail stores and said last week it aims to add 10 more in 2009.

‘Supermarket and hypermarket chains should propel growth next year as consumer spending is limited to basic needs due to the economic slowdown,” Pomento said.