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Madagascar's president Marc Ravalomanana has resigned, handing power to the military.

But the military has appointed opposition leader Andry Rajoelina as president of a transition government, after weeks of violent street protests by his followers.

Madagascar opposition leader Andry Rajoelina gives the V for victory sign as he parades through the streets of Antananarivo. [Alexander Joe/AFP]

Tanks and scores of soldiers guarded the Presidential Palace on Tuesday.

Weeks of opposition protests and turmoil on the Indian Ocean island have killed 135 people, crippled tourism and scared foreign investors in the mining and oil exploration sectors.

Antananarivo Resident, said, "The country is like in a war now, this has never happened in Madagascar, the population is very anxious."

On Monday, Madagascar's traditionally neutral army threw its weight behind opposition leader Rajoelina, and stormed a presidential palace in the heart of the capital. But President Ravalomanana was not inside. The army also seized the central bank.

Some residents support the army's move.

Antananarivo Resident, said, "There is a very big gap between the rich and the poor and the government of Ravalomanana is not doing enough about it. That's the reason why people are protesting and the army is taking responsibility."

The 59-year-old president is holed up in another presidential palace on the outskirts of the capital, with supporters forming a human shield on roads outside.

34-year-old opposition leader Rajoelina has been calling for Ravalomanana's resignation since the start of 2009, and now wants him arrested.

The opposition leader has tapped into widespread public discontent with high levels of poverty.

(CCTV March 18, 2009)