KIWOOM Morning Equity – 13 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. WALL STREET GAINS AS US CPI EASES FED PRESSURE; MSCI KEEPS INDONESIA IN EMERGING MARKET US MARKET: Wall Street closed higher on Wednesday's trading (08/12/26), supported by July US inflation data that met expectations, easing concerns over a Fed rate hike. S&P 500 rose 0.3% to 7,748.50, Nasdaq Composite strengthened 0.5% to 26,588.49, while Dow Jones Industrial Average edged down slightly to 53,770.27. The gains were mainly supported by tech and AI stocks after CoreWeave and Super Micro posted strong results and revenue outlooks. INDONESIA: Indonesia's government debt reached Rp10,293.69 trillion, or 41.26% of GDP, through June 2026, up Rp1,819.79 trillion, or 21.5%, since the end of September 2024. Economists consider the 67.5% debt growth since 2020 to have outpaced nominal GDP growth of 64.9%, while the ratio of interest payments to fiscal revenue rose to 19% from 14.6% in 2022. Although still below the 60% of GDP limit, this trend needs to be monitored to maintain fiscal sustainability. - In addition, the 2026 state budget deficit widened to Rp689.15 trillion, or 2.68% of GDP, with debt financing needs reaching Rp832.21 trillion. Meanwhile, Standard Chartered raised its 2026 Indonesia growth projection to 5.3%, supported by consumption and investment, while cutting its global growth projection to 3.0% due to geopolitical, trade, and energy price risks. - Meanwhile, MSCI did not change the composition of Emerging Markets countries in the MSCI Frontier Emerging Markets Index after completing its 2026 Annual Country Review. This review showed no change to the list of Emerging Markets countries currently included in the index, so there was no composition change stemming from this annual review. MSCI made changes to the composition of the Indonesian stock index. In the MSCI Global Standard Indexes, no stocks were added, while CPIN and GOTO were removed from the index. Meanwhile, in the MSCI Small Cap Indexes, CPIN was added, while ARTO, BUKA, ESSA, FILM, HEAL, KPIG, RATU, SMGR, and TCPI were removed. JCI closed up 1.69% at the 6,373.85 level on Wednesday's trading (08/12), moving in a range of 6,272.30 – 6,373.85. Foreign investors recorded a net buy of Rp482.79 billion in the Regular Market and Rp725.40 billion across all markets. The largest foreign fund inflows went into PTRO, BREN, CUAN, BRPT, and BBCA, while the largest net sell was recorded in BMRI, TLKM, MEDC, UNTR, and MDKA. In the foreign exchange market, the Rupiah weakened to around Rp17,870/US$, pressured by a slightly stronger US dollar ahead of the US inflation data release and still-weak domestic indicators, particularly retail sales and consumer confidence. Technically, JCI formed a bullish marubozu and closed higher at 6,373.85, once again testing the 6,377 resistance area after managing to hold above the EMA10 (6,308), EMA20 (6,247), and EMA50 (6,269). This condition indicates short-term bullish momentum is strengthening again with the higher low structure still intact. The RSI (14) at 59.19 indicates there is still room for gains and has not yet entered overbought territory. As long as JCI can hold above 6,308 – 6,269, the chance of a breakout above 6,377 remains open, with a strengthening target toward 6,462 up to 6,550, while the next major resistance is around 6,635 / 6,723. Conversely, should it fail again to break through 6,377 and fall below 6,308, JCI could potentially test 6,269, then 6,247 as the main support area. KIWOOM RESEARCH advises a buy on breakout above 6,377 or accumulate on weakness as long as JCI holds above 6,269, with a trailing stop should it close below 6,247.