THE peso and share prices recovered yesterday following the decision of the world’s central banks to provide liquidity in the markets, led by the US Federal Reserves $180 billion AIG bailout.

But Emmanuel P. Soller of Equitiworld Securities said the recovery was only a technical rebound with more losses seen in the next few weeks.

"What is pushing the market is bargain hunting, speculating that the US bailout would bring positive results," he said.

In Asia, central banks continued to shield the region from the fallout with Japan and Australia pumping $20 billion more into their financial streams.

The peso closed at 46.555, up from 46.96 last Thursday. The central bank continued supporting the peso. Total transactions at the Philippine Dealing System reached $769.05 million.

The Philippine Stock Exchange index (PSEi) went up 110.79 points to 2,462.79, or 4.69 percent, clawing back almost a third of the 12 percent loss in the past week.

Gainers edged losers 99 to 18 with 29 stocks unchanged.

The rebound by the market was a "relief rally," according to First Grade Holdings managing director Astro del Castillo, given the huge drop that was posted the past few days.

"We are not out of the woods yet. We’ve been battered in the past few days and uncertainty remains. We are deeper into the woods and not yet out of the forest. There are many institutions that are following the direction of Lehman and this will lead to further jitters," he said.

"Right now many investors are shifting to oil investments. That is why we see some uptick in the price of oil. So we are keeping our ears on the ground," he added.

President Arroyo, during the joint launching of the Civil Service Commission’s "War vs Red Tape" and 108th founding anniversary celebration, said the country has been able to weather the storm after taking "strong, decisive and targeted actions."

"While no one can predict the future during these uncertain global economic times, it seems that our measures at home are seeing us through the toughest times as we prepare for a day with lower global fuel and food prices," she said.

"The best buffer we have to external vulnerability is our own domestic internal strength. Building a stronger, healthier economy driven by domestic consumption and investment and relying less on external markets is what our reform agenda is about," she added.

Arroyo stressed the importance of reducing red-tape to boost the country’s competitiveness abroad.

"To be world-class for global competitiveness, we invest in reducing red tape in all agencies to cut business cost," the President said.

She announced that the implementing rules of Anti-Red Tape Act of 2007 are now in effect.

The Anti-Red Tape law mandates the reduction of the number of signatures needed for a person to get licenses, permits and the like. It also provides that whenever a government office fails to act within the prescribed period to renew a license, permit or authorization, the document is automatically renewed.

It also provides that all applications or requests for frontline services are to be acted upon within five working days for simple transactions and within 10 working days for complex transactions. A denial of request for access to government service shall also be required to be explained in writing, stating the name of the person making the denial and the grounds for denial.

Interior Secretary Ronaldo Puno pushed for changes in the 1987 Constitution, particularly on its economic provisions, in light of the global economic crisis.

Puno, in an ambush interview in Malacañang, said politicians and critics should stop being paranoid. He said the proposed amendments only cover several provisions, particularly the ban on foreign ownership of land.

He said that if these provisions are not amended, "we will have a large real estate overhang…a lot of these projects might be affected."

The Trade Union Congress of the Philippines said the estimated P18.1 billion in losses that Philippine banks incurred as a result of the collapse of US investment firm Lehman Brothers, combined with rising interest rates, would drag the economy down, and with it, jobs creation.

Former Sen. Ernesto Herrera, TUCP secretary general, said the affected banks would have to charge the losses against their capital reserves, thus reducing funds available for credit. The fewer capital available for lending would in turn mean potentially weaker economic activity and slower jobs expansion, he said.

Herrera urged the government to step in and accelerate spending, particularly on labor-intensive infrastructure projects.

Earlier this week, the National Statistics Office reported that the unemployment rate stood at 7.4 percent as of July 2008, with a total of 2.75 million considered totally jobless.