KUALA LUMPUR, Dec 17 — The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) surged 22.39 points to close at 1,656.52 points a day after the US Federal Reserve (Fed) increased its interest rates.

The FBM KLCI moved between 1,635.12 and 1,656.52 throughout the day.

Dealers said the US central bank’s increase of its benchmark lending rate by a quarter of a percentage point to between 0.25 per cent and 0.50 per cent showed that the world’s largest economy has finally regained its momentum.

A dealer said the Fed’s 25-basis-point increase was the first in nine years since the 2007-2009 financial crisis.

“This shows that the global economy is finally regaining its confidence and this will support other emerging countries,” he said.

Hong Leong Investment Bank said the Federal Open Market Committee’s decision was in line with the market expectations.

“With the lift-off done, the focus is now on the intensity of rate increase in 2016,” it said.

Of the heavyweights, Maybank rose 10 sen to RM8.41, TNB and Public Bank added 12 sen each to RM13 and RM18.34 respectively, while Petronas Chemicals was 10 sen higher at RM7.

Among actives, XOX was flat at 22.5 sen, APFT added 2.5 sen to 28 sen but Instacom was half-a-sen lower at 27 sen.

Market breadth was positive as advancers outpaced decliners by 594 to 298, while 323 counters were unchanged, 539 untraded and 12 others suspended.

Total volume rose to 1.95 billion shares worth RM2.52 billion from yesterday’s 1.67 billion shares worth RM1.76 billion. The FBM Emas Index increased by 90.09 points to 11,430.18, FBMT100 Index gained 87.03 points to 11,104.97 and the FBM Emas Shariah Index rose 109.10 points to 12,337.18.

The FBM 70 advanced 138.29 points to 12,825.76 and the FBM Ace was 75.32 points higher at 6,317.52.

Sector-wise, the Industrial Index perked 15.95 points to 3,173.90, Plantation Index gained 40.08 points to 7,337.60 and the Finance Index added 67.21 points to 13,977.79.

Main Market volume fell to 1.21 billion units worth RM2.1 billion from yesterday’s 1.67 billion units worth RM1.77 billion.

Turnover on the ACE Market improved to 466.65 million shares valued at RM112.22 million from 389.26 million shares valued RM96.21 million previously.

Warrants rose to 274.90 million units worth RM47 million against 212.44 million units worth RM41.91 million yesterday.

Consumer products accounted for 128.74 million shares traded on the Main Market, industrial products (287.09 million), construction (41.58 million), trade and services (456.74 million), technology (53.91 million), infrastructure (16.15 million), SPAC (87.64 million), finance (36.33 million), hotels (543,300 million), properties (76.37 million), plantations (15.23 million), mining (30,000), REITs (5.4 million) and closed/fund (14,500). — Bernama