Market Technical Reading (26/10/07): Possible Cautious Trade Ahead Of The Weekend... @ Bursa Street

Local Market Leads:
�� Despite a nearly 5% plunge in the Shanghai Composite, local market pushed
ahead by edging higher on local funds' buying-supports on Thursday.
�� Continuous strength in the ringgit that hit a 10-year high at 3.3560 versus the
US dollar, as well as a 2.15% spike in the Futures KL Index's Nov contract are
the major drivers in yesterday's rally.
�� Also, local investors' confidence was reinforced by a steady regional
performance, which reacted calmly to the steep fall in China markets, as much
attention was focused on hopes for further US interest rate cut soon.
�� In China, the benchmark Shanghai Composite plummeted 280.72pts or 4.80%
to 5,562.39 ahead of release of the third quarter GDP growth, as investors
feared a stronger-than-forecasted number will lead to more tightening measures.