The Philippine Stock Exchange index (PSEi) rose for the third straight day on Thursday, Sept. 18, after the United States Federal Reserve (US Fed) cut interest rates, as expected.

The main index added 22.96 points, or 0.37 percent, to close at 6,233.62. Sector indices were evenly mixed, while gainers barely beat losers at 89 to 88, with 66 unchanged. Volume dropped to 2.09 billion shares worth ₱6.87 billion.

“The market reacted positively to the Fed’s rate cut, as this move could prompt a similar action from the Bangko Sentral ng Pilipinas (BSP). A potential rate cut by the BSP may boost market sentiment, contributing to the recent upward movement in prices,” said Regina Capital Development Corp. managing director Luis Limlingan.

He added that, “Investors are optimistic that a more accommodative monetary stance will support economic activity and asset valuations.”

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said, “The PSEi gained for the third straight trading day amid the continuation of some bargain hunting activities after the widely expected 0.25-percent Fed rate cut and signals of another two rate cuts for the rest of 2025.”

He explained that “these future rate cuts could be matched locally by the BSP, which signaled gradual future BSP rate cuts (baby steps), moving to a sweet spot where interest rates are at the right level, policy actions to be taken one meeting at a time, no big rate cuts if the economic growth is resilient.”