Business group lends weight to Arroyo

The MBC says the restoration of order has helped the business investment climate

By CNN's Amabelle Layug

MANILA, Philippines -- The influential Makati Business Club (MBC) has thrown its full support behind President Gloria Macapagal Arroyo.

The MBC's membership of 700 executives covers about 400 of the Philippines' most prominent corporations and includes the leading business families.

MBC executive director Guillermo Luz said the business community had reacted positively to Arroyo's order of a crackdown on violent protesters as well as their leaders and organizers.

VIDEO CNN's Veronica Pedrosa reports on how Philippine President Arroyo is handling what she calls a 'state of rebellion' (May 2) Play video (QuickTime, Real or Windows Media)

"We are behind the moves to arrest the perpetrators and leaders of these rallies. They led their own followers in harm's way," Luz said.

Peso, share market responded positively

He said the markets had applauded the restoration of peace and order in Manila, which saw the share market and the peso make surprising rebounds on Wednesday.

The PSE composite index ended the day 4 percent higher, gaining 57.04 points to 1435.88, while the peso reached a high of 50.80 to the U.S. dollar after opening at 51.50.

On Thursday the peso traded slightly stronger again at 50.7, while the PSE share index was a little weaker, down 5.5 points to 1430.39.

Luz dismissed fears that the government's order to declare a state of rebellion was cause for concern by the business community, as it could be a prelude to martial law.

Luz said that the dispersal and arrest of violent protesters and their political backers had a great impact on investors and on the image of the country in the international business community.

Makati Business Club

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