KIWOOM Morning Equity – 27 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. TECH STOCKS REBOUND, CAPITAL OUTFLOWS AND RUPIAH PRESSURE REMAIN KEY CONCERNS US MARKET: Wall Street closed higher in Monday's trading (10/26/26), driven by a rebound in technology and AI stocks after Anthropic filed IPO documents. S&P 500 index rose 0.70% to 7,676.77, Nasdaq Composite strengthened 0.82% to 26,169.38, while Dow Jones Industrial Average added 0.28% to 52,361.58. Nvidia rose 2.39%, Micron strengthened 2.98%, AMD added 2.8%, and Tesla surged 5.2% after Barclays raised its recommendation to Overweight. The gains ended the pressure on technology stocks that had lasted for the past two weeks, although investors are still watching the high cost of developing AI infrastructure. INDONESIA: Bank Indonesia (BI) held the BI-Rate at 5.75% and the Lending Facility at 6.50%, and raised the Deposit Facility by 25 bps to 5% at the October 21–22, 2026 Board of Governors' Meeting (RDG). BI strengthened the DNDF incentive with a reduction in hedging costs of up to 45%, which supported inflows of US$9.9 billion in June–October 2026. To maintain liquidity, BI is gradually lowering the statutory reserve requirement (GWM) of conventional commercial banks from 9% to 7% in November–December 2026, with potential additional liquidity of Rp190 trillion, amid capital outflow pressure following the MSCI evaluation. BI is also encouraging energy import substitution through B50 biodiesel and E20 ethanol, expanding local currency transactions (LCT) with 6–7 partner countries worth US$55 billion, as well as cross-border QRIS cooperation that already covers seven countries. * Meanwhile, Danantara targets the closure of 750 SOEs in 2026 after restructuring 364 companies in the past 18 months, while also aiming for SOE net profit of Rp360 trillion. The restructuring is carried out through impairment of Rp135 trillion as well as consolidation, mergers, divestments, and liquidation to improve efficiency and governance quality. Overall, BI emphasized that rupiah stability remains a priority while keeping economic growth and inflation on target at 2.5±1% in 2026–2027, while the SOE restructuring is expected to strengthen Danantara's performance and investment capacity in the long term. JCI closed 1.22% lower at 5,373.09 in Monday's trading (10/26/26). Foreign investors recorded net sell of Rp2.03 trillion in the regular market, and net sell of Rp1.85 trillion across all markets, while cash and negotiated transactions recorded net buy of Rp172.12 billion. Accumulated foreign net sell on a YTD basis reached Rp124.22 trillion. The heaviest foreign selling pressure occurred in BMRI, TLKM, BBCA, BBRI, ANTM, ITMG, CUAN, TINS, BBNI, and ENRG. Meanwhile, the largest foreign inflows were recorded in BRIS, BRPT, MEDC, EMAS, SMGR, PWON, CTRA, ESSA, DMAS, and CPIN. In the foreign exchange market, the Rupiah weakened past Rp18,100 per US Dollar, recording weakness for four consecutive sessions and touching its lowest level since late July. Technically, JCI began to correct after rising significantly from its bottom. The RSI (14) turned down to 33.7. JCI is vulnerable to testing the nearest support at 5,317. If it breaks down, JCI could continue toward support at 5,278 / 5,185. Meanwhile, if JCI is able to hold above the 5,317 level, JCI could move back in the resistance range of 5,422 / 5,455 and 5,491 (EMA10). Investors are advised to remain cautious, apply a buy on weakness strategy selectively, and wait for further confirmation before accumulating more aggressively.