Supporters of Philippine President Gloria Macapagal Arroyo staged a peaceful rally in the capital Saturday, upstaging a smaller protest held earlier in the week by opponents demanding she step down for misconduct.

Banners at the rally in Rizal Park read "President Arroyo please stay" and "God bless the president and the Philippines." Many of the demonstrators, estimated at 120,000 by police, were from government offices and Christian groups.

Steadied by a few key allies, Arroyo has dug in her heels to ride out mass resignations and defections that, a week ago, appeared to be driving her four-year presidency to a rapid end.

The opposition accuses Arroyo of cheating her way to victory in the 2004 election and her family of corruption. She has denied wrongdoing but now faces the threat of impeachment by Congress.

The opposition fell short of its target on Wednesday with a crowd of 30,000 political opponents mixed with groups of leftists, students and farmers in Manila's business district.

Bigger protests have been promised around July 25, when Arroyo is scheduled to deliver an annual state of the nation address.

Arroyo's political enemies concede she is unlikely to be dislodged by marches nowhere near the size or social breadth of "people power" uprisings that overthrew Ferdinand Marcos in 1986 and Joseph Estrada in 2001.

Instead, they are warming to the idea of trying to impeach her in Congress as shifting party loyalties threaten her majorities in both houses.

Weeks of political turmoil have kept investors nervous and raised fears that a protracted impeachment battle or constitutional debate will paralyze reforms aimed at raising revenues and cutting debt.

But financial markets were lifted on Friday by expectations the Supreme Court would soon end its freeze on a broader sales tax that is at the center of the government's reforms.

Thousands wave red and blue flags as they gather in a park in Manila, the capital, in support of their embattled president, Gloria Macapagal Arroyo.