KIWOOM Morning Equity – 27 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 AWAIT THE FED DECISION AS THE GOVERNMENT PREPARES THE STATE BUDGET TO ADDRESS ENERGY RISKS US MARKET: Wall Street closed mixed in Friday's trading (24/07/26). Dow Jones gained 0.46% to 51,947.25, supported by the strengthening of telecommunications, financial, and healthcare sector shares. S&P 500 rose slightly by 0.05% to a new record high, while Nasdaq Composite weakened 0.64% due to a sell-off in technology stocks. Dow's gain was led by Verizon (+5.84%), Salesforce (+4.29%), and IBM (+3.65%), while Nasdaq's weakness was influenced by a sharp decline in Intel (-7.91%) amid investor rotation from technology stocks to defensive sectors. INDONESIA: The government has begun preparing various state budget (APBN) scenarios as an anticipatory step against global oil price increases. Minister of Finance Purbaya Yudhi Sadewa emphasized that the government remains committed to maintaining energy subsidies and will not raise subsidized fuel prices. Under the direction of President Prabowo Subianto, the government is currently preparing simulations with various global oil price assumptions to calculate the potential additional subsidy burden and its impact on the state budget. This step aims to maintain fiscal stability while ensuring adequate budgetary space should global energy prices continue to rise. - In addition, the Directorate General of Taxes (DJP) is strengthening its 2026 tax revenue security strategy by partnering with 165 large taxpayers who began being administered at the Large Taxpayer Office Two on July 01, 2026. Through a cooperative compliance approach, DJP is encouraging increased compliance based on transparency and collaboration to support the national tax revenue target of Rp2,357.7 trillion, with the Large Taxpayer Regional Office targeted to contribute Rp805.42 trillion or around 34.15% of the total national target. JCI closed lower to the range of 6,196 in Friday's trading (24/07) after moving in the range of 6,159.15 – 6,268.53. Foreign investor selling pressure persisted with a net sell of Rp1.25 trillion in the Regular Market and Rp1.36 trillion across all markets. Foreign fund inflows primarily entered BBRI, BBCA, ANTM, BULL, and BRPT, while the largest selling action occurred in BMRI, BUMI, CUAN, EMAS, and PTRO. On the other hand, the Rupiah strengthened slightly to around Rp17,970/US$ after previously touching Rp18,030/US$, supported by Bank Indonesia's policies offering cheaper forex hedging facilities, expanding local currency usage in trade, and adjusting liquidity frameworks to strengthen banking liquidity. Technically, JCI formed a bearish candle and closed back below the EMA50 (6,260), while testing the EMA10 area (6,184). Nevertheless, the index remains above the EMA20 (6,112), so the medium-term uptrend has not completely changed, though short-term correction risks are beginning to rise. The RSI (14) fell to 54.38, indicating bullish momentum is starting to weaken although still remaining in the neutral area. If selling pressure continues, JCI has the potential to test the support area of 6,184 – 6,159, followed by the 38.20% Fibonacci at 6,130 and the EMA20 at 6,112. If both levels are broken, the correction has the potential to continue toward the 61.80% Fibonacci at 5,931. Conversely, if able to rebound, JCI needs to break back above the 6,260 – 6,270 area, followed by 6,315 as the nearest resistance. A breakout above that level will open up opportunities for further strengthening toward 6,394. KIWOOM RESEARCH advises investors to wait & see while observing JCI movements around the EMA20 area. Investors who have secured gains can apply a trailing stop or gradual profit taking if selling pressure continues, while averaging up can be considered if JCI manages to break back above 6,315 supported by an increase in transaction volume.