KIWOOM Morning Equity – 15 July 2026 This document is for information only and for the use of the recipient. It is not to be reproduced or copied or made available to others. MARKETS RISE ON COOLING INFLATION WHILE INDONESIA SAFEGUARDS FISCAL STABILITY US MARKET: Wall Street closed mixed leaning higher in Tuesday's trading (14/07/26), amid investor response to the release of softening US inflation data, hawkish testimony from the new Fed Chair, and volatile tensions in the Middle East. S&P 500 index rose 0.4% to close at the level of 7,543.59 points, while tech-heavy NASDAQ Composite strengthened 0.9% to the level of 26,107.01 points. On another side, blue-chip Dow Jones Industrial Average index ended almost flat with a slight gain of 0.02% at the level of 52,508.27 points. INDONESIA: The national economic growth target faces a tough challenge after a number of international institutions and market participants compactly project that Indonesia's real GDP growth will only hold in the range of 5% over the next few years. S&P Global Ratings projects Indonesia's economy to grow 5.1% in 2026, but risks slowing down to an average of 4.9% per year over the 2027–2029 period due to policy implementation uncertainty which is assessed to potentially disrupt investor confidence and pressure the domestic financial market. This conservative projection is in line with the IMF's forecast which pegs growth at 5% in 2026 and the ADB at the 5.2% level. Although Q1-2026 growth briefly touched 5.6% thanks to seasonal spending, that real sector improvement has not yet been reflected in the domestic financial market where stock market capitalization shrunk by more than 30% and the rupiah exchange rate depreciated around 7% against the US dollar throughout the first half of 2026. - Meanwhile, the government ensured that state expenditure budget efficiency measures will continue to run in this 2026 fiscal year, specifically through tightening the budget for the Free Nutritious Meal (MBG) and Red and White Village Cooperatives (KDMP) programs to maintain APBN resilience. Minister of Finance Purbaya Yudhi Sadewa emphasized that MBG budget efficiency will definitely be carried out with a potential savings reaching Rp68 trillion to Rp80 trillion out of the government's total savings target of Rp268 trillion, of which the technical details are currently being calculated by the National Nutrition Agency (BGN). The Ministry of Finance will also deploy a treasury team to conduct strict oversight in the field to avoid budget deviations, with sanctions of program suspension if problems are found. JCI closed higher by 0.03% to the level of 6,039.52 in Tuesday's trading (14/07/26). Throughout trading, JCI moved in the range of 6,002.90 – 6,095.02. Foreign investors again recorded a net sell in the Regular Market of Rp885.58 billion, while across all markets foreign investors posted a net sell of Rp830.60 billion, bringing the cumulative year-to-date (YTD) net sell to Rp91.88 trillion. Foreign selling pressure primarily occurred in BBRI, BMRI, BBCA, ASII, and AMMN shares, while foreign fund inflows were recorded in TLKM, TPIA, BREN, TINS, and ANTM. Meanwhile, the Rupiah exchange rate against the United States dollar strengthened below the level of Rp18,100 per US dollar. This strengthening marked a recovery for the rupiah from losses experienced in the previous two sessions, after the rating agency S&P Global Ratings reaffirmed Indonesia's credit rating at the investment grade category with a stable outlook. Technically, JCI is still moving above the EMA10 and EMA20, moving sideways. JCI still has the opportunity to continue its strengthening toward the range of 6,121 – 6,171. If it is able to break above that area, the strengthening has the potential to continue toward the dynamic resistance of the EMA50 around 6,273. Meanwhile, the immediate support sits at 5,987 and 5,949, with the next strong support at 5,898 if selling pressure rises again. The RSI (14) is still flat at the 50.9 level and successfully held above the 50 level, indicating that bullish momentum is still strong. KIWOOM RESEARCH advises investors to remain trend following by applying a trailing stop to lock in profits that have formed. Adding positions (averaging up) can be done gradually if JCI is able to maintain its momentum above the 5,987 area and continue its strengthening toward the 6,121 – 6,171 resistance.