The country’s main stock index lost nearly two percent on Monday as sessions headed towards the Christmas weekend.

The Philippine Stock Exchange index closed 1.99 percent, or down 136.58 points, to 6,714.13 points.

The financial sector led the market decline as the index lost 2.98 percent to 1,621 points,

The peso declined to P49.96 against the US dollar from P49.92. Volume at the Philippine Dealing System reached $310.60 million from Friday’s $347.20 million.

In corporate news, the Philippine Stock Exchange approved Banco de Oro’s P60 billion stock rights offering

In a disclosure, Banco de Oro said the proceeds “ will support the Banco de Oro’s medium-term growth objectives amid the country’s favorable macroeconomic prospects.”

This will also “provide a comfortable buffer over higher capital requirements with the forthcoming imposition of the Domestic Systemically Important Bank (DSIB) surcharge,” Banco de Oro said.

“The additional capital will also allow BDO to sustain its momentum and take advantage of the country's growth opportunities,” the bank said.

DSIBs are banks “whose distress or disorderly failure would cause significant disruptions to the wide financial system and economy,” the Bangko Sentral ng Pilipinas website said.

SM Prime Holdings told the stock exchange it opened its seventh mall in Tianjin , marking its seventh mall in China .

“The opening of SM City Tianjin reflects our strong confidence on China ’s economy. This gives SM Prime a wider perspective on China ’s shopping culture, allowing us to capture bigger opportunities as an international integrated property developer,” SM Prime President Jeffrey Lim said. DMS