Cotabato City, Philippines - Fire razed a Philippine military ammunition depot in the troubled southern region of Mindanao on Friday, triggering a series of explosions that caused panic among nearby residents.

Major Randolph Cabangbang, a regional military spokesman, said the cause of the fire was still being determined, but assured the public that sabotage was not involved in the incident.

He said the depot inside Camp Siongco in Datu Odin Sinsuat town in Shariff Kabunsuan town, 930 kilometres south of Manila, was completely destroyed by the fire.

"No need to be alarmed," he said. "Nobody was hurt, and the ammunition stored in the warehouse are old, defective and were scheduled for disposal."

Manila - Australia said Thursday it will provide a 17-million-peso (346,940-dollar) grant to the Philippines to improve weather forecasting and help the disaster-prone country better prepare for natural calamities.

The Australian embassy in Manila said the fund will be provided to the country's weather bureau, which has often been criticized for inaccurate forecasts, through the Australian Agency for International Development.

"As a regional neighbour and key development partner, Australia is helping improve the Philippines' preparedness to manage and respond to disasters and emergencies," Australian Ambassador Rod Smith said. "The poor are the most affected by natural disasters."

Manila - One government soldier and two communist rebels were killed in separate clashes in the eastern Philippines, an army spokesman said Thursday.

One soldier and one communist rebel were killed on Wednesday during a clash in Basey town in Samar province, 570 kilometres south-east of Manila, said Lieutenant Colonel Romeo Brawner.

Brawner said another soldier was wounded in the fighting that erupted when patrolling troops encountered heavily-armed communist rebels in the village of Bulao in Basey.

In a separate clash on Wednesday, one communist rebel was also killed in the town of Candelaria, also in the eastern province of Quezon.

Manila - Philippine stocks surged 4.73 per cent on Thursday following gains in regional markets and the US Federal Reserve's interest rate cut, traders said.

The 30-share composite index added 84.29 points to close up for the second straight session at 1,864.93, from Wednesday's finish of 1,780.64.

A total of 1.885 billion shares worth 2.517 billion pesos (51.367 million dollars) were traded.

Gainers swamped losers 88 to 21, while 27 issues were unchanged.

Manila - Islamic militants on Thursday freed one of two abducted humanitarian workers after 45 days in captivity in the southern Philippines, police and local officials said.

The freed hostage was identified as Esperancita Hupida, programme coordinator of a non-government organization serving poor communities in Basilan province, 900 kilometres south of Manila.

Chief Superintendent Bensali Jabarani, a regional police commander, said Hupida was released at dawn by Muslim Abu Sayyaf rebels in a remote village in Tipo-Tipo town.

Hupida's husband fetched her from the area, upon instructions from the guerrillas, according to Basilan Vice Governor Al-Rasheed Sakalahul.

Manila - Philippine troops recovered three homemade bombs planted in a bus terminal in the southern Philippines, an army spokesman said Wednesday.

The improvised explosive devices were found Tuesday in Kabacan town in North Cotabato province, 960 kilometres south of Manila, according to Lieutenant Colonel Romeo Brawner.

Brawner said the bombs were made from 81-millimetre and 60-millimetre mortars that were attached to electric blasting caps with mechanical timers.