KUALA LUMPUR: The domestic market surged after a strong showing on Wall Street overnight as the Federal Reserve raised rates by 50 basis points and assured investors that future rate hikes will likely not go any higher.

       The major US indices surged between 2.8% and 3.2% on the decision as investors had braced for potential rate hikes of 75 basis points and more as the Fed attempts to rein in soaring inflation.

       "As the US Federal Chair eased the concern over a more aggressive rate hikes outlook, we foresee the big surge on Wall Street overnight may spill over to the stocks on the local front.

       "Despite the worries of the Covid-19 lockdown in China would slowdown the economic growth, we believe the elevated commodity prices may provide support for the respective sector at least for the upcoming reporting season," said Malacca Securities research in a note.

       At 9.05am, the FBM KLCI was up 10.07 points to 1,610.5, after easing off its opening of 1,614.34 points.

       The biggest jump was seen in Petronas Chemicals, which climbed 38 sen to RM10.60 as the stock played catch up to rising crude oil prices over the Aidilfitri holiday.

       Brent crude was firm above US$110 a barrel on news of the EU potentially banning imports of crude from Russia, while crude palm oil surged past RM7,600 per tonne.

       Plantation counters were mostly up, lead by Sime Darby Plantation gaining six sne to RM5.30, IOI rising five sen to RM4.72 and KL Kepong shedding four sen to RM29.42.

       Financial counters rose on the interest rate hikes with Maybank gaining two sen to RM9.09, Public Bank rising three sne to RM4.72, CIMB climbing eight sen to RM5.28 and Hong Leong Bank adding eight sen to RM21.06.

       On the actives list PUC was down 0.5 sen to seven sen, Bina Puri flat at five sen and Dunacia falling 0.5 sen to 13.5 sen.