KIWOOM Morning Equity – 31 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. AI OPTIMISM LIFTS GLOBAL MARKETS, EU ADVANCES GLOBAL GATEWAY INVESTMENTS IN INDONESIA US MARKET: Wall Street closed sharply higher on Thursday's trading (07/30/26), driven by Microsoft's earnings report exceeding expectations and the company's decision to maintain its 2026 capital expenditure guidance. Optimism over AI investment prospects rose again, boosting tech stocks. S&P 500 rose 1.7% to 7,437.63, Nasdaq Composite surged 2.8% to 25,122.18 (its largest daily gain since June 15), while Dow Jones Industrial Average strengthened 1.2% to 52,208.06. INDONESIA: The European Union affirmed its commitment to supporting the development of sustainable transportation in Indonesia through the Global Gateway initiative, which includes investment, technology transfer, and long-term partnerships. One of the main projects is the Surabaya Regional Railway Line (SRRL), with €236 million in funding from KfW Development Bank for the modernization and electrification of the Surabaya–Sidoarjo commuter line. This step is expected to strengthen connectivity, accelerate the transition toward low-carbon transportation, and boost national economic competitiveness. - In addition, the government officially implemented a subsidized mortgage (KPR) policy with tenors of up to 40 years, allowing the public to choose installment periods ranging from 10 to 40 years according to their ability. This policy is expected to expand access to homeownership through more affordable installments and boost the property sector. - Meanwhile, the Constitutional Court (MK) ruled that the Free Nutritious Meal Program (MBG) budget may no longer use the education budget by the 2028 State Budget at the latest. The government can still fund the program through other state budget items, while some parties consider the ruling still leaves challenges for the program's funding sustainability and future fiscal conditions. JCI closed up 1.56% at 6,186.36 on Thursday's trading (07/30), moving in a range of 6,106.55 – 6,186.36. Foreign investors booked a net buy of Rp100.16 billion in the Regular Market and Rp262.81 billion across all markets. Foreign buying was concentrated in BBCA, TINS, TLKM, BULL, and INCO, while the largest selling occurred in TPIA, EMAS, AMMN, ANTM, and BBRI. The Rupiah strengthened slightly to around Rp18,060/US$, supported by a weaker US dollar following the Fed's decision. Technically, JCI formed a swing low and managed to bounce off the 38.20% Fibonacci Retracement area (6,130), while closing back above the EMA10 (6,164) and EMA20 (6,124), signaling short-term selling pressure is starting to ease. However, the index still faces dynamic resistance at the EMA50 (6,244), which serves as the confirmation level for further strengthening. The RSI (14) rose to 53.65, reflecting momentum starting to recover toward neutral-bullish territory. As long as it holds above 6,160, JCI has room to continue strengthening toward 6,244, and if it breaks out, could potentially continue rising to 6,268 – 6,315. Conversely, if it falls back below 6,160, JCI risks retesting 6,130 down to 6,080 – 6,030 as the next support. KIWOOM RESEARCH advises traders to consider a buy on breakout if JCI manages to break through 6,244 with rising volume, while investors who already hold positions can hold/average up on stocks that remain strong above support, applying a trailing stop around the 6,160 area.