Cotabato City, Philippines  - Seven soldiers and 20 Muslim rebels were killed in a clash in the southern Philippines, a regional army spokesman said Saturday.

The fighting erupted at dawn Friday when patrolling troops encountered about 80 Moro Islamic Liberation Front (MILF) rebels in Mamasapano town in Maguindanao province, 960 kilometres south of Manila, Lieutenant Colonel Jonathan Ponce said.

Ponce said five soldiers were wounded in the fighting, which lasted for more than eight hours.

Manila  - Three Muslim separatist rebels and a government militiaman were killed in a clash in a southern Philippine province, an army spokesman said Friday.

Lieutenant Colonel Jonathan Ponce said the firefight erupted when Moro Islamic Liberation Front (MILF) guerrillas opened fire at patrolling militiamen in Kalamansig town in Sultan Kudarat province, 930 kilometres south of Manila, on Thursday.

The 30-minute firefight resulted in the death of three MILF rebels and a militiaman, Ponce said.

Manila  - Communist rebels on Friday freed three police officers after almost three months in captivity in a province just outside the Philippine capital.

The rebels released the captive policemen - Inspector Rex Cuntapay and police officers Alberto Umali and Marvin Agesan - to the International Committee of the Red Cross in the hinterlands of Rizal province, 35 kilometres east of Manila.

The guerrillas said in a statement that they freed the three captives as a "goodwill and humanitarian gesture."

Manila - The Philippines said Friday it was "impossible" for government forces to pull out from a large portion of a southern island where Muslim militants have been holding captive three Red Cross workers for more than two months.

Muslim Abu Sayyaf rebels have threatened to behead one of the hostages if the government did not reposition soldiers, policemen and militiamen away from their encampment in Indanan town on Jolo island, 1,000 kilometres south of Manila, by the end of the month.

Manila  - Philippine shares rose for the fifth straight day on Friday, soaring 2.61 per cent amid brightening prospects for a recovery of the global economy.

The Philippine Stock Exchange's 30-share composite index gained 51.99 points to close at 2,040.25, from Thursday's finish of 1,988.26.

A total of 2.5 billion shares valued at 2.82 billion pesos (58.44 million dollars) were traded.

Gainers swamped losers 78 to 30, with 34 issues unchanged.

Manila  - Muslim militants on a southern Philippine island would face a full military assault if they carry out a threat to behead one of three Red Cross hostages at the end of the month, a military spokesman said Thursday.

Muslim Abu Sayyaf rebels made the threat to force government troops to move further away from their encampment in the jungles of Indanan town on Jolo island, 1,000 kilometres south of Manila.