Morning Chatter

KBVS MORNING CHATTER
Wednesday, 4 March 2026

Headline News :
•    BBTN - Records digital credit applications 
•    SIDO - Continue to expand amid current geopolitical tensions
•    ARNA - Net profit declined 5.98% yoy in FY25 
•    UNVR – Officially divests Sariwangi tea business to Savoria for IDR1.5 tn
•    AVIA – A IDR1.74 tn in net profit in 2025
•    JSMR – Net profit declined 19.21% yoy in 2025

Market Commentary :
U.S. stocks declined on Tuesday (Dow -0.83%, S&P -0.94%, Nasdaq -1.02%) as the escalating conflict in the Middle East pushed energy prices higher and heightened investor concerns over renewed inflationary pressure. In rates and FX, the U.S. 10-year Treasury yield rose 2.3 bps (+0.52%) to 4.06%, while the U.S. Dollar Index strengthened to 98.05 (+0.51%).
Commodities moved stronger: Coal rose +6.87% to USD134.5/ton amid disruptions in global energy markets following attacks on energy facilities in the Middle East; CPO gained +1.01% to MYR4,188/ton, supported by stronger vegetable oil prices in Chicago and spillover from the rally in the energy sector; Brent oil climbed +4.29% to USD81.69/bbl, the highest since January 2025, as intensifying U.S. Israel tensions with Iran disrupted shipments from the region and heightened fears of a prolonged conflict. Meanwhile, gold declined -4.44% to USD5,098/oz, pressured by a stronger dollar and fading expectations of rate cuts as inflation concerns resurfaced.
Asian markets moved lower on Tuesday (Nikkei -3.06%, Hang Seng -1.12%, Shanghai -1.43%, Kospi -7.24%) as the conflict involving Iran entered its fourth day, weighing on regional risk sentiment, with South Korea’s Kospi posting its worst decline in 19 months. The JCI also fell -0.96% to 7,939.8 amid foreign net sell of IDR61.17 tn, mainly from ANTM, BBRI, and AADI, while inflows were recorded in BMRI, PTBA, and ENRG. The top laggards were AMMN, BBRI, and BREN, while BBCA, AADI, and UNTR provided some support. Despite a stronger opening driven by the surge in energy prices following the escalation in the Middle East, profit taking in energy and commodity related stocks triggered a reversal, with the decline becoming broad based across almost all sectors.
Asian markets opened weaker on Wednesday (Kospi -5.93%, Nikkei -2.54%). Today, we expect the JCI to remain under pressure, tracking ongoing global and regional risk concerns, despite potential support from gains in the energy and metals sectors.

Regards,
KBVS Research Team

 

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