KIWOOM Morning Equity – 30 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. FED MAINTAINS HAWKISH STANCE, MARKETS AWAIT THE APPOINTMENT OF THE NEW BANK INDONESIA GOVERNOR US MARKET: Wall Street closed lower on Wednesday's trading (07/29/26), triggered by continued selling in semiconductor stocks and a spike in oil prices due to escalating tensions in the Middle East. S&P 500 fell 1.5% to 7,316.15, Nasdaq Composite weakened 1.7% to 24,442.94, while Dow Jones Industrial Average corrected 2.2% to 51,594.14. The decline occurred even though the Fed held its benchmark interest rate steady, as the market remained concerned about the inflation outlook and artificial intelligence (AI) sector valuations. INDONESIA: The government will begin the process of selecting a new Governor of Bank Indonesia after Perry Warjiyo resigned on July 25, 2026. Under the Bank Indonesia Law, the President will propose a maximum of three candidates to the DPR (House of Representatives) to undergo a fit and proper test at Commission XI before obtaining approval. During this process, Senior Deputy Governor Destry Damayanti has been appointed Acting Governor (PGS) until a definitive governor is determined. The change in BI leadership has drawn market attention as it is considered likely to affect the direction of monetary policy and rupiah exchange rate stability. - In addition, CORE Indonesia assesses that Bank Indonesia's independence could potentially face challenges under the provisions of the P2SK Law, which is considered to open up greater room for government intervention in central bank policy. CORE also estimates that fiscal performance in the second half of 2026 will face pressure due to the potential increase in energy subsidies amid high oil prices, the risk of a tax revenue shortfall of Rp73–149 trillion, and rising government debt issuance costs due to increased perception of Indonesia's risk. This condition could potentially push the state budget deficit wider than the government's projection of 2.85% of GDP. JCI closed down 0.64% at the 6,091.39 level. Throughout Wednesday's (07/29) trading, JCI moved in a range of 6,029.32 – 6,174.41. Foreign investors booked a net sell of Rp183.81 billion in the Regular Market, while across all markets they still recorded a net buy of Rp8.97 trillion. Foreign fund inflows were mainly directed through BBCA, DSSA, BRPT, DEWA, and TPIA, while the largest selling pressure was recorded in EMAS, BBRI, BMRI, BNBR, and AMMN. Meanwhile, the Rupiah moved around Rp18,090 per US dollar and remained under pressure due to uncertainty following Perry Warjiyo's resignation as Governor of Bank Indonesia. As a result, market participants are expected to remain wait-and-see until the government announces the definitive BI governor in the coming months. Technically, JCI again formed a bearish candle and closed below the 38.20% Fibonacci retracement (6,118), while also below the EMA10 (6,160), EMA20 (6,118), and EMA50 (6,246). This condition indicates selling pressure still dominates and confirms weakening short-term momentum after the index failed to hold above the dynamic support area. The RSI (14) fell to 48.53, breaking through neutral territory and indicating bullish momentum is weakening further, leaving room for further correction. If JCI fails to hold above the psychological area of 6,090 – 6,080, the weakness could potentially continue toward 6,029 – 5,987, with further support at 5,930 – 5,900, which is the 61.80% Fibonacci retracement area. Conversely, if a rebound occurs, JCI needs to break back through the EMA20 at 6,118, then the EMA10 at 6,160, before testing 6,220 – 6,246 (EMA50) as the nearest resistance. KIWOOM RESEARCH advises investors to wait & see while monitoring JCI's movement around the 6,090 – 6,080 area as near-term support. Investors who have already profited are advised to apply a trailing stop or gradual profit-taking should JCI break back through that support area, while buy accumulation should wait for confirmation of a rebound signal above the EMA20 and EMA10.