Zamboanga City, Philippines - A Filipino-Chinese businessman has been freed a week after he was seized by Muslim militants on a southern Philippines island, a police report said Saturday.

Diong Hin Que, a trader, was freed by his captors late Friday near a public school in Indanan town on Jolo island, 1,000 kilometres south of Manila, the report said.

Que said he did not pay any ransom for his release and said his kidnapping was a case of mistaken identity. He did not give details about his ordeal or his abductors.

Cotabato City, Philippines - Six communist rebels were killed in a clash with government troops in the southern Philippines, a regional military spokesman said Saturday.

Major Randolph Cabangbang said the fighting erupted Friday when soldiers encountered an undetermined number of guerrillas is the outskirts of Tulunan town in North Cotabato province, 960 kilometres south of Manila.

Cabangbang said among the fatalities was a guerrilla commander identified as Felix Amodia. He said Amodia's body was turned over to the local officials.

Zamboanga City, Philippines  - Muslim militants on Friday freed unharmed an abducted employee of a lending firm in the southern Philippines after three days of captivity, a military spokeswoman said.

Ammad Sali was one of two of the firm's employees abducted Tuesday in Sumisip town in Basilan province, 900 kilometres south of Manila.

Sali was recovered by troops in the village of Mahayhay in nearby Maluso town Friday morning, said Lieutenant Esteffani Cacho, a regional military spokeswoman.

Manila  - Philippine share prices climbed 2.66 per cent Friday, buoyed by overnight gains on Wall Street and hopes of a new massive stimulus package in the United States.

The 30-share composite index of the Philippine Stock Exchange gained 50.41 points to close at 1,942.48.

Turnover was up at 1.16 billion shares worth 2.67 billion pesos (56.80 million dollars).

Gainers led losers 66 to 23 while 40 issues were unchanged.

Manila - The Philippine military has mobilized troops on a southern island for a possible rescue mission for three abducted staff of the International Committee of the Red Cross (ICRC), a spokesman said Thursday.

Lieutenant Colonel Ernesto Torres said government troops have cordoned off certain areas on Jolo island, 1,000 kilometres south of Manila, where al-Qaeda-linked Muslim Abu Sayyaf rebels could be holding the three ICRC hostages.

Manila - Philippine share prices rose 2.4 per cent Thursday on positive news that inflation slowed and most Asian stock markets were up.

The 30-share composite index of the Philippine Stock Exchange gained 44.52 points to close at 1,892.07.

More than 777.77 million shares worth 1.71 billion pesos (36.38 million dollars) were traded.

Gainers led losers 56 to 22 while 43 issues were unchanged.

Traders said market sentiment was boosted by the government's announcement that inflation in January declined to 7.1 per cent from December's 8 per cent.