The Philippine stock market opened the week 0.75 percent lower as concerns over Europe resurfaced.

The bellwether Philippine Stock Exchange index slipped by 34.91 points to close at 4,578.92 on Monday, while the broader all-share index declined by 0.45 percent or 14.20 points to 3,114.87.

Trading volume reached 8.3 billion shares worth 3.9 billion pesos (89.20 million U.S. dollars) with 91 stocks declining, 67 advancing, and 51 were unchanged.

Of the six counters, only the mining and oil sector bucked the trend and gained 1.18 percent.

"Europe began to rear its ugly head on Friday, snapping extended rallies in global equity markets, including ours. Europe' s problems have been on top of investors' list of concerns over the past two years and this year is no different," analyst Justino Calaycay of Accord Capital Equities Corp. said.

On Friday, the Dow Jones industrial average index slipped by 0. 39 percent or 48.96 points. Likewise, Asian equities were all trading negatively as of Monday afternoon.

Calaycay said investors' optimism was evident during the past two weeks when the local equities had been rallying to record highs. However, the stark reality of the threat of a European contagion and recession re-emerges, he added.

"This is what investor will face as we move into the third week of trades and deeper into 2012," Calaycay said.

Following the downgrade of nine Eurozone economies, investors' attention will now shift to the European Financial Stability Facility bond auction on Jan.16, he said.

"The take-up of the bond will be our first hint on the sentiments of investors moving forward," the analyst said.

Stocks in the 30-company index most closed lower. Ayala Land, Inc., Banco de Oro Unibank, Inc., and Megaworld Corp. tumbled.

DMCI Holdings, Inc. and Semirara Mining Corp. meanwhile bucked the trend.