KIWOOM Morning Equity – 23 October 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 AND GEOPOLITICAL RISKS WEIGH ON GLOBAL SENTIMENT, BI EXTENDS CREDIT INCENTIVES AMID RUPIAH PRESSURE US MARKET: Wall Street closed lower on Thursday (22/10/26), with the heaviest pressure coming from technology and semiconductor stocks. S&P 500 fell 1.2% to 7,663.43, Nasdaq Composite tumbled 2.6% to 26,008.86, while Dow Jones Industrial Average was relatively flat at 52,867.98. Meta dropped 7% despite reporting higher earnings and revenue, while Nvidia fell 4.4%, AMD tumbled 8.1%, and Intel weakened 8%. Lam Research also fell 11.8% after giving a disappointing performance outlook. This weakness showed that investors are becoming more selective in assessing technology companies' growth prospects, particularly amid the scale of AI investment needs. INDONESIA: Bank Indonesia (BI) extended the relaxation of the Loan to Value/Financing to Value (LTV/FTV) ratio for property loans through 31 December 2027, with a maximum financing ratio of 100%. BI also maintained the 0% minimum down payment (DP) requirement for new motor vehicle loans through the same period. This policy is expected to boost credit growth amid weakening consumer financing demand. Through August 2026, mortgage (KPR) growth slowed to 4.2% YoY with outstanding loans of Rp858.3 trillion, while motor vehicle loans contracted 10.3% YoY to Rp127.7 trillion. - In addition, President Prabowo Subianto is targeting people's credit disbursement to reach Rp400 trillion in 2027, aiming to reach around 28 million families, particularly farmers, fishermen, MSME players, communities in remote areas, and low-income groups in urban areas. This target represents a significant increase from current financing realization, which has reached around Rp53 trillion with two million beneficiaries. The government hopes that expanded credit access can help communities develop businesses, increase family income, and drive economic growth from regions and small business groups. JCI closed up 1.12% at 5,387.90 in Thursday's (22/10/2026) trading, even as foreign investors still recorded net selling of Rp1.47 trillion in the regular market and Rp1.49 trillion across all markets. In the cash and negotiated markets, foreign investors booked a net sell of Rp15.82 billion, bringing accumulated net sell for the year to date to Rp120.57 trillion. The largest selling pressure targeted BBCA, TLKM, BBRI, BRIS, ASII, BBNI, TINS, BRMS, ANTM, and PTBA. In contrast, the largest foreign fund inflows went into BMRI, DMAS, AMMN, GOTO, SINI, MDKA, MEDC, ARKO, PTRO, and SQMI. In the foreign exchange market, the Rupiah weakened toward Rp18,040 per US Dollar, in line with a stronger Dollar ahead of next week's Fed decision. Pressure on the Rupiah also stemmed from oil prices holding around US$100 per barrel and rising food costs due to El Niño. In addition, concerns over potential foreign capital outflows increased following President Prabowo's criticism of MSCI's proposed change to Indonesia's market classification. Technically, JCI moved volatile again but managed to close positive. RSI (14) rose again to the 33.4 level, indicating room for recovery. If JCI can test the 5,404 level, it has the potential to continue toward resistance at 5.38 (EMA10) and 5,607 – 5,631. However, if pressure rises again and JCI fails to break out above 5,404, it could return to 5,317, and JCI could then fall back to support at 5,185 / 5,012 / 4,999. Investors are advised to remain cautious, apply a selective buy on weakness strategy, and wait for further confirmation before accumulating more aggressively.