KIWOOM Morning Equity – 07 September 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 & GEOPOLITICS WEIGH ON MARKETS; INDONESIA PUSHES EFFICIENCY & FISCAL DISCIPLINE US MARKET: Wall Street closed lower on Friday's trading (09/04/26). Dow Jones Industrial Average fell 0.51%, S&P 500 weakened 0.38%, while Nasdaq Composite corrected 0.29%. The weakness was mainly seen in large tech stocks, with Apple falling 2.51%, Microsoft weakening 2.03%, and Salesforce correcting 1.97%. Conversely, Caterpillar rose 1.72%, Honeywell strengthened 0.95%, and Home Depot added 0.94%. In the S&P 500, KLA Corporation was the top gainer, up 7.32%, while Lululemon was the biggest decliner after plunging 17.39%. INDONESIA: The eruption activity of Mount Anak Krakatau has affected flight operations in a number of regions. The Ministry of Transportation recorded seven airports temporarily halting flight operations until 08:59 WIB on September 07, 2026, including Soekarno-Hatta, Radin Inten II, Halim Perdanakusuma, Husein Sastranegara, Budiarto, Pondok Cabe, and M. Taufik Kiemas. This disruption could potentially pressure transportation, tourism, and goods distribution activities should the eruption and volcanic ash impact last longer. - Amid this disruption, the government continues its SOE restructuring by closing 290 companies, saving around Rp50 trillion, and targeting the closure of 700 other SOEs by the end of 2026, with projected efficiency savings reaching Rp100 trillion. This policy could potentially improve SOE efficiency and profitability, further reinforced by accelerated downstreaming of natural resources. - Meanwhile, on the fiscal side, the government is tightening budget discipline to keep the 2026 state budget deficit below 3% of GDP. Through July, the deficit stood at 0.9% of GDP, supported by better revenue, while unproductive spending will be cut. This efficiency is positive for fiscal credibility and could potentially ease pressure on government bond (SBN) yields, though excessive cuts could reduce the boost to economic growth. JCI closed down 0.47% at the 6,636.48 level on Friday (09/04), after moving in a range of 6,633.92 – 6,704.13. Foreign investors recorded a net sell of Rp317.01 billion in the Regular Market, with the largest buying accumulation in TINS, CUAN, PTRO, AADI, and BUMI, while the largest selling pressure occurred in DSSA, ASII, BBCA, ANTM, and ISAT. Amid JCI's weakness, the Rupiah instead strengthened to around Rp17,650/US$, holding below Rp17,700 for a second consecutive session, in line with a weaker US Dollar after the market again trimmed expectations for a Fed rate hike this month following more dovish comments from Fed officials. Technically, it reversed into weakness, which could signal a short-term reversal. The RSI (14) fell back to the 64 level, indicating bullish momentum is weakening again. JCI is expected to be vulnerable to further correction toward the nearest support at 6,595 / 6,551 / 6,525. Meanwhile, should it manage to rebound, JCI could potentially return to resistance at 6,681 / 6,704 and continue to close the gap area at 6,723. KIWOOM RESEARCH still advises a strategy worth considering is to hold or selectively buy on weakness as long as JCI can hold above the support area, while investors need to increase caution should the index break through support.