Sept. 12 -- Former Philippine President Joseph Estrada was found guilty of plunder, which is punishable by life imprisonment, six years after he was ousted by ``people power'' demonstrations on the streets of Manila.

An anti-graft court cleared Estrada, 70, of a perjury charge and acquitted his son, Senator Jinggoy Estrada, and a lawyer of plunder charges. Estrada's wife, Luisa Ejercito Estrada, and other family members wept as the verdict was read.

``We expected this,'' Estrada told reporters as he was escorted from the courtroom to return to house arrest on his estate outside Manila. ``This is a special court created to convict me.''

The verdict may spark demonstrations against President Gloria Arroyo, who, as vice president, succeeded Estrada in 2001. When Estrada was arrested three months later, his supporters stormed the presidential palace and battled with security forces, leaving four dead.

``His family and supporters will look for ways to oust the administration,'' said Earl Parreno, an analyst at the Institute for Political and Economic Reforms in Manila. ``They may recruit sections of the military to pursue with urgency the agenda of toppling the administration because it's the only way he can be freed.''

Between 400 and 700 Estrada supporters gathered outside the court, ABS-CBN News and police reported. As many as 100,000 may demonstrate today, Makati Mayor Jejomar Binay, an opposition leader, told ABS-CBN earlier.

`There will be demonstrations,'' said Carmencita Aguilar, a political science professor at Kalayaan College in Manila. Still, they will ``die down. They will not be able to topple Arroyo.''

The peso rose 0.9 percent to 46.715 to the U.S. dollar at 12:08 p.m. in Manila, according to Tullett Prebon Plc, the world's second largest inter-dealer broker. The Philippine Stock Exchange Index rose 1.2 percent, closing at 3,307.60 at noon.

Yesterday, the peso fell 0.9 percent and the stock index dropped 0.4 percent. ``After the verdict came out and the market saw that there seems to be no problem, people started jumping back,'' said Roland Avante, treasurer at Chinatrust (Philippines) Commercial Bank in Manila.

``The market sighed with relief with the decision,'' said Jonathan Ravelas, a strategist at Banco de Oro-EPCI Bank. ``The verdict is the first step for us to leave this behind and focus on economic matters and other issues.''

Estrada's lawyer Estelito Mendoza said the defense team will ask the court to reconsider its judgment and, if they refuse, appeal to the Supreme Court.

If Estrada accepts the ruling, it will be considered final, giving Arroyo the power to pardon him, Special Prosecutor Dennis Villa-Ignacio said. Both said life imprisonment entailed at least 20 years in jail.

Estrada has said the government offered to let him go into exile, but he refused.

The government accepts the verdict, Presidential Press Secretary Ignacio Bunye said in a statement, without elaborating. Leaders of the Philippine Chamber of Commerce and Industry said they will support a presidential pardon for Estrada to seek ``closure'' on the issue, Philippine Daily Inquirer reported.

Estrada was a movie star who played underdog heroes before serving as a mayor, senator and vice president. He won the presidency in 1998 in the biggest landslide in Philippine history. About 38 percent of respondents said they trusted him in an April Pulse Asia Inc. survey. Arroyo's score was 25 percent.

While Arroyo controls the House of Representatives, opposition and independent candidates won nine of 12 Senate seats in May elections. Estrada's son Jinggoy is now Senate president pro-tempore.

``It's hard to discount Estrada's charisma with the masses,'' Parreno said. ``The economy is improving but the masses don't feel it yet. In the slum areas, there is strong anti-Arroyo, pro-Estrada sentiment.''

Estrada was impeached by the House of Representatives in November 2000 on corruption charges. A Senate trial broke down in January 2001 after his political allies blocked evidence. Manila residents protested and called for him to resign. Three days later, the military and police switched allegiance to Arroyo and Estrada left the presidential palace, although he never formally resigned his office.

``This verdict is intended to legitimize the occupancy of an illegal tenant in Malacanang,'' the presidential palace, Estrada's son Jinggoy said today in Manila. ``The people will receive this with moral outrage and disgust. The time of reckoning will come. That time may not be too far now.''

Six thousand police and military are deployed or on standby to secure the presidential compound, the courthouse and Estrada's safety, according to the deputy director of the national police.

In 2004, after confinement in police and military camps, Estrada was put under house arrest in his 15-hectare (37-acre) estate three hours outside Manila, where he's built a presidential library modeled on Ronald Reagan's. The court said he'd be allowed to remain there for now. The trial ended June 15.