KUALA LUMPUR: Equities prices rallied higher as the growing positive momentum continued to defy the overbought situation on the domestic market.

       With foreign funds continuing to flow into the local market, equities on Bursa Malaysia opened on a strong positive note on Thursday, setting the tone for a sixth straight day of gains.

       At 9.05am, the country's benchmark FBM KLCI was up 8.22 points to 1,611.42 with energy and plantation stocks leading the rally.

       However, analysts caution that the overheating market could soon lead to profit-taking and limit the near-term upside.

       "Despite the sustained foreign fund buying interest, profit-taking should check gains given the aggravated overbought momentum sparked by the recent rally, and caution over surging inflation forcing more aggressive US interest rate hikes and unresolved UN/Russia geopolitical tensions.

       "Increased profit-taking resistance will likely stall further near-term upside towards 1,620, with subsequent tougher hurdles seen at 1,640 and 1,680," said TA Securities Research in a report.

       Following yesterday's gains, the research firm lifted its immediate support level to 1580 with 1,550, 1,520 and 1,500 pegged as stronger supports.

       Jumping higher at the open, Kuala Lumpur Kepong rose 82 sen to RM26.42 on the back of postive earnings announced late yesterday.

       Sector peers Sime Darby Plantation climbed 12 sen to RM4.76 while IOI added six sen to RM4.40.

       There was also positive price action in telcos amid ongoing 5G developments, Axiata added six sen to RM3.96, Digi grew six sen to RM4.26 and Maxis was unchanged at RM4.52.

       Meanwhile, consumer counters continued their climb led by Heineken Malaysia up RM1 to RM21.36, Carlsberg gaining 80 sen to RM21 and Nestle rising 70 sen to RM135.20.

       Top actives of the day were DNeX falling one sen to RM1.26, VC up one sen to eight sen and SMTrack down 0.5 sen to 22 sen.