KIWOOM Morning Equity – 27 August 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. GLOBAL MARKETS IN WAIT-AND-SEE MODE AHEAD OF NVIDIA & FED; INDONESIA’S REGIONAL FISCAL OUTLOOK IN FOCUS US MARKET: Wall Street closed slightly lower on Wednesday's trading (08/26/26), with investors tending to take a cautious stance ahead of Nvidia's earnings report, seen as an important indicator for the sustainability of momentum in the artificial intelligence (AI) sector. Dow Jones Industrial Average fell 0.21% to 53,463.88, S&P 500 weakened 0.02% to 7,675.70, while Nasdaq Composite corrected 0.08% to 26,130.20. Nvidia fell 1.6% ahead of the release of its quarterly report, while the healthcare sector was the weakest sector in S&P 500. Meanwhile, Meta and Apple each strengthened around 1.1%. INDONESIA: The trend of fiscal recentralization is expected to continue in 2027 amid rising central government spending that flows directly into the regions, while fiscal space through Transfers to Regions (TKD) remains limited. TKD for 2027 is projected to reach Rp735 trillion, up 5.5% from the 2026 outlook, but still well below the 2025 ceiling and 2023 realization. Central spending through the Free Nutritious Meal Program (MBG) of around Rp240 trillion and social protection of around Rp550 trillion continue to support regional economic activity, but an increasingly larger share sits outside regional budgets (APBD), so local governments' room to set development priorities could potentially narrow. - In addition, limited regional fiscal capacity risks pressuring capital expenditure, infrastructure, and disaster mitigation spending. Meanwhile, Bank Indonesia Deputy Governor candidate Aida S. Budiman considers Indonesia needs to grow above 7% to achieve high-income country status by 2045 through productivity, industrialization, and stronger financing. BI Governor candidate Destry Damayanti affirmed that synergy with the government will not reduce BI's independence. For the market, stronger policy coordination is seen as positive sentiment, though the credibility of BI's independence remains key to investor confidence, capital flows, and rupiah stability. JCI closed down 1.48% at the 6,405.69 level on Wednesday's trading (08/26), with foreign investors recording a net sell of Rp201.10 billion in the Regular Market. Foreign funds were mainly directed into BMRI, DSSA, BBCA, MDKA, and ICBP, while the largest selling pressure occurred in TPIA, ISAT, AMMN, BBNI, and ITMG. Meanwhile, the Rupiah traded around Rp17,720 per US Dollar, weakening from its earlier strength around Rp17,650. The weakness occurred amid growing market caution ahead of a planned large demonstration in Jakarta, adding to domestic risk sentiment. Technically, JCI again formed a bearish candle, failing to hold its strength above the 6,500 area. The index closed below the EMA10 (6,416), but still held above the EMA20 (6,355) and EMA50 (6,315). This condition indicates short-term selling pressure is starting to increase, although the medium-term trend structure remains relatively intact as long as JCI can hold above that dynamic support area. The RSI (14) stood at 55.11 and remained above the neutral level of 50, indicating bullish momentum has not fully disappeared, though it is starting to weaken. Should JCI fail to hold above the 6,375 – 6,355 area, selling pressure could potentially continue toward 6,315 as the next support, with further support at 6,186, a gap area. Conversely, should a rebound occur, JCI needs to break back through the EMA10 at 6,416 before testing resistance at 6,421, then the 6,500 – 6,532 area. KIWOOM RESEARCH advises a wait & see approach while monitoring JCI's ability to hold above 6,375 – 6,355. Buy accumulation can be done gradually should the index show rebound confirmation again and manage to break through the 6,416 – 6,421 area, while a trailing stop needs to be applied should JCI break below the 6,355 support.