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PHILIPPINE STOCKS prolonged their winning sequence on Thursday, with investors wagering that the Bangko Sentral ng Pilipinas (BSP) may soon replicate the US Federal Reserve\u2019s decision to relax monetary policy, enhancing the appeal for risk assets.<\/span><\/p>\n The benchmark Philippine Stock Exchange index (PSEi) increased by 0.37% or 22.96 points to close at 6,233.62, whereas the broader all-share index grew by 0.15% or 5.84 points to 3,734.45. This marked the PSEi\u2019s third consecutive day of increases.<\/p>\n \u201cThe market responded favorably to the Fed\u2019s rate reduction, as this action could trigger a similar response from the BSP,\u201d Luis A. Limlingan, head of sales at Regina Capital Development Corp., stated in a Viber message. \u201cAn anticipated rate reduction by the BSP could enhance market sentiment, supporting the recent rise in prices.\u201d<\/p>\n He further mentioned that investors foresee a more relaxed monetary policy to stimulate economic activities and asset valuations.<\/span><\/p>\n On Wednesday, the US Federal Reserve slashed its benchmark rate by 25 basis points, marking its first decrease in nearly a year, while indicating that two additional cuts could be expected before the year concludes.<\/p>\n Fed Chairman Jerome H. Powell pointed out the softness in the US labor market even as inflation exhibited signs of tapering.<\/p>\n While Wall Street\u2019s response was varied \u2014 the Dow Jones Industrial Average closed higher, whereas the S&P 500 and Nasdaq declined \u2014 Philippine investors interpreted the Fed\u2019s action as a signal for local easing.<\/p>\n Finance Secretary Ralph G. Recto previously stated that the BSP might consider one or two 25-basis-point reductions in its policy sessions on Oct. 9 and Dec. 11, contingent on US and domestic inflation developments.<\/p>\n