STOCKS on Wednesday fell on concern the US may sink into a recession after home sales dropped more than forecast in the world’s biggest economy and oil prices remained above $96 a barrel.

                Filinvest Land Inc. led declines by builders on speculation that a weaker economy in the US, the biggest overseas market for Philippine exports and labor, will hurt local- home sales.

                “The Philippine growth story is still intact except somehow we are always associated with what’s happening in the US,’’ said Rico Gomez, who helps manage about $1 billion in assets at Rizal Commercial Banking Corp.

                Apex Mining Corp. led advances by metal producers after copper prices climbed to a two-month high and gold rose to a record. Megaworld Corp. gained on prospects of higher earnings after news that office rents will continue to rise this year as supply remains short of demand.

                The Philippine Stock Exchange index lost 4.48, or 0.1 percent, to 3,416.08 at the close, paring an earlier loss of up to 1 percent. The benchmark gained 0.9 percent Tuesday.

                Filinvest Land, the fifth-largest Philippine builder by market value and which relies on overseas Filipinos for a quarter of its home sales, fell 4 centavos, or 3.3 percent, to P1.18. Robinsons Land Corp., the second-largest Philippine mall operator, fell 25 centavos, or 1.6 percent, to P15.50, a three-week low.

                The US National Association of Realtors reported Tuesday that pending home sales fell 2.6 percent in November, reinforcing concern that the worst housing slump in 16 years will deepen. The depressed housing market, along with rising energy costs and higher unemployment, may stifle consumer spending, which accounts for more than two-thirds of the US economy.

                The Philippines ships almost a fifth of its exports to the US, home to a third of the more than 8 million Filipinos working abroad. Funds sent home by overseas Filipinos make up at least 10 percent of the economy, helping fuel the fastest growth in at least three decades.

                Oil, which the Philippines sources mostly overseas, recently traded 0.3 percent higher at $96.62 a barrel in New York, headed for its second day of gain.

                First Gen Corp., the nation’s largest publicly traded-power producer, fell P2, or 3.5 percent, to P55.50, its biggest decline since November 20. Philippine Long Distance Telephone Co., the biggest company by market value, lost P50, or 1.6 percent, to P3,005.

                The 32-member benchmark dropped as much as 1 percent earlier Wednesday. It has lost more than 200 points since the year started.

                Philippine economic growth will not exceed 7 percent this year and in 2009 because of a slowing US economy and a weaker US dollar, the World Bank said in a report Wednesday. Still, that puts the Philippines on track to extending a nine-year economic expansion, the longest in 25 years.

                Class A shares of Apex Mining, equity reserved for Filipinos in the unit of UK-based Crew Gold Corp., added 10 centavos, or 1.6 percent, to P6.40. Its Class B shares, which have no ownership restrictions, increased 20 centavos, or 2.9 percent, to P7.10, its highest in a month.

                Gold for immediate delivery traded 1.1 percent higher at $887.73 an ounce on the New York Mercantile Exchange after advancing 2.3 percent Tueday. Copper for delivery in three months recently added 0.8 percent to $7,290 a ton on the London Metals Exchange, after jumping 4.6 percent Tuesday.

                Philex Mining Corp., the largest Philippine metal producer, gained 30 centavos, or 3.1 percent, to P9.90, trimming this week’s loss to 1 percent.

Shares worth P3.39 billion were traded, 31 percent less than the six-month daily average. Losers edged gainers 53 to 49 on the exchange.

The following stocks rose. Stocks symbols are in brackets after company names.

Megaworld (MEG PM), the nation’s largest builder of office space for call centers and providers of outsource business services, gained 5 centavos, or 1.5 percent, to P3.30, reversing a loss of as much 4.6 percent on prospects of higher earnings.

Office rents will increase 15 percent this year after rising 26 percent in 2007 as demand from call centers and other providers of outsourced business services continues to exceed supply, according to news.

IPVG Corp. (IP PM), a software and Internet-content provider that’s expanding into call centers, gained 20 centavos, or 3 percent, to P6.80, snapping a four-day, 16 percent slump.

The company, which was suspended from trading Tuesday, said it agreed to pay $10.5 million for Delaware-based Prolexic Technologies Inc., a provider of Internet and network security. The value is at a discount to Prolexic rivals, IPVG said.

AYALA Land Inc. (ALI) will allot a larger capital expenditure this year to fund its residential, mall and office developments.

Harbour Centre eyes P3-B IPO

HARBOUR Centre Port Terminal Inc. is raising as much as P3 billion from a planned domestic public offering in the second half of 2008.

Mabuhay Satellite Corp., a unit of Philippine Long Distance Telephone Co. (PLDT), said Tuesday it had sealed a deal with Viettel Corp., a telecom provider in Vietnam, to help augment the latter’s network.

THE National Telecommunications Commission (NTC) has allowed broadcasting firms to extend pilot tests on their digital television, whether through terrestrial or handheld service, until March this year amid protests from a group of cable TV providers.

STOCKS on Wednesday fell on concern the US may sink into a recession after home sales dropped more than forecast in the world’s biggest economy and oil prices remained above $96 a barrel.