At 9.09am, the FBM KLCI was 12.63 points higher at 1,615.03, extending its lead on the 1,600 psychological level.
Axiata jumped 28 sen or 7.4% to RM4.08 while Digi was up 57 sen or RM15.2% to RM4.32.
It was announced yesterday that Axiata's Celcom and Telenor Asia's Digi were merging in a deal that would see the creation of Malaysia's largest telco and the fifth-largest company by market capitalisation on Bursa Malaysia.
Meanwhile, other stocks on the rise included Hong Leong Financial Group up 32 sen to RM17.66, Nestle climbing 60 sen to RM135.70 and PPB up 14 sen to RM18.64.
Following their rally yesterday, there is some profit-taking in glove counters including Top GLove falling eight sen to RM5.32, Hartalega down 22 sen to RM9.92 and Supermax sliding eight sen to RM4.79.
Top actives on the market were VSolar gaining 0.5 sen to 3.5 sen, LKL down 3.5 sen to 41.5 sen and SYG falling one sen to 43 sen.
Global equities are expected to be positive today following US Federal Reserve chairman Jerome Powell's assurances that the central bank has enough tools to cope with the inflationary pressure.
Wall Street rallied overnight following the comments, which raised the prospects of further economic recovery.
"Following the overnight rally in the Nasdaq, we expect buying interest to emerge in the technology sector especially those that are in the oversold region.
"Besides, we reckon the market participations may look into consumer, aviation, property and construction for recovery-theme exposure," said Malacca Securities Research on its sector focus for Bursa Malaysia.