MANILA - PHILIPPINE President Gloria Macapagal Arroyo condemned on Friday the twin blasts in a southern city that killed two people and wounded nearly 50 others, while unknown assailants tried to set off a third bomb hours after her visit.

Mrs Arroyo flew to Iligan city, about 485 miles (780 kilometres) southeast of Manila, to condole with victims of the bombings and offered money and funeral assistance to their families.

Thursday's bombs were packed with nails and exploded minutes apart at a department store and a nearby clothing shop.

The two men who died were baggage counter clerks at the two establishments. A closed-circuit television camera at one of the shops showed two men wearing traditional Muslim garments handing over what appeared to be a bag. Minutes later, an explosion ripped the baggage counter apart.

Mrs Arroyo condemned the attacks as 'ruthless, violent acts of terrorism against our communities'.

Iligan police chief Virgilio Ranes said that several hours after Mrs Arroyo left the city, police defused a third homemade bomb hidden inside a plastic bag near a fruit stand - located across the street from a shop hit by the blasts.

Rebel spokesman Eid Kabalu condemned the bombing but said the government should first investigate the blasts before blaming Muslim guerrillas. -- AP