KUALA LUMPUR: The domestic market jumped higher in early Wednesday trade as the buying momentum continued to rise on the back of a strong Wall Street performance.
The leap past the 1,600 psychological resistance on the FBM KLCI defied analyst predictions that there would be profit-taking following the five-day rally that have taken prices to overbought levels.
A 9.04am, the FBM KLI was up 11.13 points to 1,610.74.
Over recent sessions, the local index has bucked the regional weakness as commodities prices lifted prospects of energy and plantation plays.
However, analysts are cautioning that that the market has reached toppish levels and could be due for some retracement.
"Increasingly overbought momentum after rising for five straight days, surging inflation and lingering caution over the elevated Russia-Ukraine geopolitical tensions should see profit-taking limiting near-term upside.
"On the index, key resistance checking upside will be at 1,600 and 1,620 with subsequent tougher hurdles at 1,640 and 1,680," said TA Securities Research in a report.
The research firm pegged support for the index at 1,550 with 1,520 and 1,500 being stronger supports.
Among individual counters, Maybank jumped eight sen to RM8.70 and Press Metal rose 13 sen to RM6.97 to lead the blue-chips higher.
There was also positive price action in Petronas Chemicals climbing six sen to RM9.44, IHH rising six sen to RM6.62 and Petronas Gas climbing 32 sen to RM17.58.
There was profit-taking in plantation stocks however following their recent sharp climb. Sime Darby Plantation shed nine sen to RM 4.60 while Kuala Lumpur Kepong retraced an earlier loss to remain status quo at RM25.52.
Oil-and-gas-related counters retreated slightly amid the pull back in crude oil prices. Hibiscus Petroleum slid one sen to RM1.13 while Bumi Armada dropped 1.5 sen to 53.5 sen.
Among the top actives, DNeX rose 0.5 sen to RM1.18, SMTrack gained 0.5 sen to 21.5 sen and Eastland dropped two sen to 6.5 sen.