KIWOOM Morning Equity – 28 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. CAUTIOUS MARKET AHEAD OF THE FED MEETING, BI LEADERSHIP TRANSITION IN FOCUS US MARKET: Wall Street closed mixed on Monday's trading (07/27/26) after briefly strengthening early in the session. Weakness in semiconductor stocks limited the market's gains following reports that China had successfully begun mass production of domestically-made deep ultraviolet (DUV) lithography machines, seen as an important step toward chip supply chain independence. S&P 500 closed relatively flat at 7,413.18, Nasdaq Composite weakened 0.2% to 24,932.08, while Dow Jones Industrial Average strengthened 0.5% to 52,210.08. All three indices rebounded from the previous week's weakness, particularly Nasdaq which had corrected more than 2%. INDONESIA: The process of replacing the Governor of Bank Indonesia (BI) has come into the spotlight after Perry Warjiyo officially resigned for personal reasons. Commission XI of the DPR (House of Representatives) affirmed that the process of selecting a new governor will follow the mechanism under the BI Law through a fit and proper test conducted objectively and professionally. Meanwhile, BI Senior Deputy Governor Destry Damayanti has been appointed as Acting (Plt) Governor of BI to ensure continuity of monetary policy and financial system stability during the transition period. Market participants and economists consider a transparent, merit-based selection process that maintains the central bank's independence to be an important factor in preserving BI's credibility, maintaining rupiah exchange rate stability, controlling inflation, and maintaining investor confidence amid global economic uncertainty. - In addition, the National Nutrition Agency (BGN) has permanently halted the operations of 883 kitchens implementing the Free Nutritious Meal Program (MBG) that were found to have violated food safety standards, covering aspects of hygiene, sanitation, food quality, and waste treatment facilities (IPAL). The government affirmed that the shutdown was carried out to guarantee the safety of beneficiaries, while food distribution remains ensured to continue through the transfer of services to other kitchens so that the implementation of the MBG program is not disrupted. This step is expected to strengthen program governance, improve service quality, and ensure food safety standards are applied consistently across all regions of Indonesia. JCI closed down 0.17% at the 6,185.78 level. Throughout Monday's (07/27) trading, JCI moved in a range of 6,144.27 – 6,219.42. Foreign investors booked a net sell in the Regular Market of Rp491.89 billion, while across all markets foreign investors recorded a net sell of Rp820.67 billion. Foreign fund inflows were mainly through BBCA, AADI, RAJA, KOTA, and MEDC, while the largest foreign selling pressure was recorded in TPIA, EMAS, BULL, BBRI, and ASII. The Rupiah exchange rate weakened to around Rp18,005 per US dollar due to sentiment over the resignation of Bank Indonesia Governor Perry Warjiyo, while the market monitors the BI leadership transition process. Technically, JCI formed a doji candle and closed below the EMA50 (6,257), while testing the EMA10 area (6,184). Even so, the index still held above the EMA20 (6,119) so the medium-term uptrend remains intact, although short-term correction risk is starting to increase. The RSI (14) fell to 53.7, indicating bullish momentum is starting to weaken though still in neutral territory. If selling pressure continues, JCI could potentially test the 6,159 – 6,144 support area, then the 38.20% Fibonacci level at 6,130 and the EMA20 at 6,119. If both levels are breached, the correction could potentially continue toward the 61.80% Fibonacci level at 5,931. Conversely, if it manages to rebound, JCI needs to break back through the 6,219 – 6,260 area, then 6,315 as the next resistance. A breakout above that level would open opportunities for further strengthening toward 6,394. KIWOOM RESEARCH advises investors to wait & see while monitoring JCI's movement around the EMA20. Investors who have already profited can apply a trailing stop or gradual profit-taking should selling pressure continue, while averaging up could be considered if JCI manages to break back through 6,315 supported by an increase in trading volume.