KIWOOM Morning Equity – 20 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. US INDICES REBOUND AMID HORMUZ & FED RISKS; BI OPTIMISTIC INVESTMENT WILL SUPPORT GROWTH US MARKET: Wall Street closed higher on Wednesday's trading (08/19/26), after a decline in US Treasury yields gave the stock market room to rebound from the pressure of previous sessions. S&P 500 rose 0.21% to 7,707.98, Nasdaq Composite strengthened 0.16% to 26,331.09, while Dow Jones Industrial Average rose 0.22% to 53,463.05. However, the gains remained limited as tech and semiconductor stocks stayed under pressure, with the Philadelphia Semiconductor Index falling more than 2%. INDONESIA: Bank Indonesia considers investment to be emerging as one of the drivers of economic growth, as a number of government strategic projects are realized. Q2 2026 economic growth reached 5.29%, with gross fixed capital formation (PMTB) growing 6.87%, supported by building and non-building investment. A number of projects in industrial estates (KI), special economic zones (KEK), and other strategic projects are starting to enter the groundbreaking stage, while government spending also supported economic activity. BI maintained its 2026 economic growth projection in the range of 4.9%-5.7%, with current growth starting to move toward the midpoint to upper limit of the projection. Macroeconomic stability also remained intact, reflected in foreign exchange reserves of US$145.3 billion. - In addition, the government plans to cut the subsidized fuel quota for certain fuel types in 2027 to 20.09 million kiloliters (KL), down 58.5%, or around 28.34 million KL, from 48.43 million KL in 2026. This policy is part of efforts to control energy subsidies, including Pertalite, assuming a 2027 ICP price of US$75/barrel. The quota cut could potentially tighten public access to subsidized fuel and increase the shift in consumption toward non-subsidized fuel, which could add to transportation costs and pressure purchasing power, particularly among lower-middle income groups. JCI closed down 0.86% at the 6,394.13 level on Wednesday's trading (08/19/26), after moving in a range of 6,373.81 – 6,490.91. Foreign investors recorded a net sell of Rp488.49 billion in the Regular Market, though across all markets they booked a net buy of Rp933.53 billion. The largest foreign fund inflows went into TINS, DSSA, BBCA, BULL, and TLKM, while the largest selling pressure was recorded in ASII, ANTM, AADI, BUMI, and INET. In the foreign exchange market, the Rupiah was relatively stable below Rp17,850 per US Dollar after Bank Indonesia held the BI-Rate at 5.75% for a second consecutive month, in line with market expectations. Technically, JCI pulled back after earlier testing the 6,490 – 6,500 resistance area, closing to form a bearish candle. However, JCI still held above the EMA10 (6,355.58), EMA20 (6,294.17), and EMA50 (6,286.34), so the short-term trend remains relatively positive. The RSI (14) stood at 57.67, still above the neutral level of 50, indicating bullish momentum remains intact though starting to weaken after the index failed to continue strengthening. Should JCI fail to break back through 6,490 – 6,500, the pullback could potentially continue toward 6,377 – 6,355, with the next support at 6,294 – 6,286, the EMA20 and EMA50 area. As long as that area can be maintained, the chance of JCI retesting the 6,490 – 6,500 resistance remains open. Conversely, should JCI manage to break through 6,500, the strengthening could potentially continue toward 6,723. With the index still positioned above all major EMAs and the RSI in positive territory, a buy on weakness strategy can still be considered around 6,355 – 6,294, while weakness below 6,286 would signal increasing risk of further correction.