The Philippine Stock Exchange index (PSEi) gains on Wednesday (Sept. 17, 2025) partly on optimism for a further cut in the Bangko Sentral ng Pilipinas based on the rate decision of the US Federal Reserve later in the day (Manila time). The peso, in turn, ended sideways against the US dollar. (PNA file graphics)
Investor optimism over possible further cuts in the Bangko Sentral ng Pilipinas’ (BSP) policy rates lifted the local stock market on Wednesday, while the peso stayed steady against the US dollar.
The Philippine Stock Exchange index (PSEi) surged 1.01 percent to close at 6,210.66, while the broader All Shares index gained 0.60 percent to 3,728.61.
All sectoral indices joined the rally, led by Services, which jumped 1.90 percent. Mining and Oil followed with a 1.47 percent climb, while Financials advanced 1.02 percent, Holding Firms rose 0.88 percent, Property edged up 0.26 percent, and Industrial gained 0.16 percent.
Trading volume reached nearly 7.5 billion shares valued at PHP10.01 billion. Market breadth was positive, with 104 advancers outnumbering 83 decliners, while 59 issues were unchanged.
Luis Limlingan, head of sales at Regina Capital Development Corporation, said the market appears to be positioning ahead of the US Federal Reserve’s policy decision, with sentiment buoyed by Finance Secretary Ralph Recto’s remarks hinting that the BSP could ease further if the Fed cuts rates.
“With inflation still within the target range, a Fed cut could be a key trigger for the BSP to ease further later this year,” Limlingan noted.
The US Fed’s policy-making Federal Open Market Committee (FOMC) is expected to announce its decision after its two-day meeting ending September 17.
Despite a slight uptick in August to 1.5 percent from 0.9 percent in July, inflation has averaged just 1.7 percent in the first eight months—still within the BSP’s 2–3 percent target band. This benign inflation environment has allowed the central bank to slash policy rates by a cumulative 75 basis points so far this year, bringing the target reverse repurchase rate down to 5 percent, its lowest since November 2022.
The stable domestic backdrop also supported the peso, which closed at 56.89 per US dollar from 56.91 the previous day. It opened at 56.80, traded between 56.75 and 56.94, and averaged 56.86. Dollar volume stood at $1.49 billion, down from $1.95 billion the day before.