KIWOOM Morning Equity – 28 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 POSITIVE, DRIVEN BY NVIDIA & AI; INFLATION RISKS AND DOMESTIC SENTIMENT IN FOCUS US MARKET: Wall Street closed higher on Thursday's trading (08/27/26), driven by a surge in tech stocks after Nvidia's performance and outlook reinforced optimism over the artificial intelligence (AI) theme. S&P 500 rose 0.72% to 7,730.99, Nasdaq Composite surged 1.57% to 26,541.35, while Dow Jones Industrial Average strengthened 0.20% to 53,569.44. Nvidia surged 8.7% after reporting quarterly revenue of US$92.22 billion, up 106% YoY, while also providing fiscal 2028 revenue growth guidance well above market expectations. Gains also occurred in software stocks, with Salesforce surging nearly 23% and CrowdStrike rising more than 20%, making the tech sector the main driver of the Wall Street rally. INDONESIA: Pressure on the middle class has become a government concern amid rising social unrest and demonstrations on Thursday (08/27/2026). Over the past five years, around 9.48 million people have fallen out of the middle-class group, even though the middle class and those aspiring to it make up 66.35% of the population and support 81.49% of public consumption. Cost-of-living pressure, layoffs, job insecurity, and rising production costs could potentially weaken household consumption and pose a risk to economic growth. The government is considered to need to strengthen protection for the lower-middle class through tax incentives, transportation and housing support, reskilling programs, and policies that encourage formal job creation so that this group does not become further at risk of falling out of the middle class. - In addition, DPR leadership set December 15, 2026 as the deadline for completing the Asset Forfeiture Bill and stated readiness to resign should that target not be met. Meanwhile, Commission XI of the DPR has approved Destry Damayanti as the candidate for Governor of Bank Indonesia for the 2026–2031 term, with Aida S. Budiman as the candidate for Senior Deputy Governor and Solikin M. Juhro as the candidate for Deputy Governor of BI. These three names will next be brought to the DPR Plenary Session on September 01, 2026 for ratification. The change in BI leadership is a market focus, as investors will watch monetary policy continuity, central bank independence, and the policy direction in maintaining rupiah stability, inflation, and economic growth. JCI closed up 1.81% at the 6,521.75 level on Thursday's trading (08/27), after moving in a range of 6,376.65 – 6,521.75. Despite the index's significant gain, foreign investors still booked a net sell of Rp113.45 billion in the Regular Market. Foreign fund inflows were mainly directed into BUMI, BRMS, TPIA, INET, and BMRI, while the largest selling pressure was recorded in BBRI, TLKM, BBNI, ISAT, and ASII. Meanwhile, the Rupiah weakened and moved around Rp17,750 per US Dollar, with domestic sentiment still fragile amid demonstrations and growing investor caution over the domestic socio-political situation. Technically, JCI managed to rebound after its correction touched the dynamic and trendline support. JCI remained above the EMA10 (6,439), EMA20 (6,371), and EMA50 (6,323), and still moved above the uptrend line. The RSI (14) moved back up to the 60.60 level, indicating bullish momentum remains fairly strong and has not yet entered overbought territory. As long as JCI can hold above the EMA10 in the 6,439 area, the chance of strengthening remains open to retest the 6,551 resistance, before continuing to rise toward 6,635 and 6,733 (closing the gap area). Conversely, should selling pressure increase again and JCI break through the 6,439 support, the index could correct toward 6,371 – 6,323 as the dynamic support area. KIWOOM RESEARCH advises a strategy worth considering is to hold or selectively buy on weakness as long as JCI can hold above the 6,439 – 6,371 area, while investors need to increase caution should the index break through 6,323, as this could open the chance for a deeper correction.