Three groups - one including Corazon Aquino's brother and his wife, both former lawmakers; another including a cardinal and bishops of the influential Catholic Church; and a third, a radical left-wing political party - are pushing for a return of People Power. Their protests are drawing only thousands to the streets. The president is taking their tactics seriously, though, with officials speaking of violations of the sedition law and warning against a coup. Filipinos fought hard for their democracy and the president has to avoid overreacting.

Alleged abuse of power is behind the protests. Beyond the claims of corruption is a botched commando raid on Muslim insurgents on southern Mindanao Island on January 25 that killed a suspect in the 2002 Bali bombings, but also left 44 officers dead. Benigno Aquino is claimed to have had a hand in the secretive planning, adding to the outrage, and a peace pact with separatist Muslims in Mindanao that he has devoted much of his energies to could be in jeopardy.

The economy is still performing well and Aquino's approval ratings have not worryingly dipped. But the president is well aware that corruption and plunder charges tainted the legacies of his two immediate predecessors. He, and his rivals, have to tread carefully lest they trample on the People Power spirit that has inspired democracy-seekers the world over.

Eoin Treacy's view

In an environment where currency market performance is increasingly being looked at as a prerequisite for investment, the Philippines stands out. While the Indonesian Rupiah and Singapore Dollar have been particularly weak, the Peso has been a regional stalwart. In addition to a burgeoning new middle class, the political situation has stabilised after decades of upheaval. The true test of a democracy is in the peaceful transition of power following elections and the continuity of long-term growth strategies. The Philippines has, so far, passed that test.

The Philippines Composite Index broke out to new all-time highs in January and while somewhat overbought in the short term, a sustained move below the 200-day MA, currently near 7250, would be required to question medium-term scope for additional upside.