Morning Chatter
KBVS MORNING CHATTER
Thursday, 16 July 2026
Headline News:
• BREN – Reportedly Bids USD5 bn for Philippines’ EDC
• UNTR – Injects USD45 mn loan to Arafura Surya Alam
• HATM - Plans 800 mn share private placement for fleet expansion
• SMDR - A IDR460 bn investment for two new chemical tankers
• BJTM - Nine board members acquire 2.28 mn shares via LTI programme
• MLPT – Conducts stock split 1:25, effective 21 Jul '26
• DILD - Contests Bank Mayapada’s PKPU filing against subsidiary
• SGER – Plans bond issuance for expansion
• HAIS - Director Mr. Rahmad Pudjotomo resigns
• YUPI – Around 90.7% of IPO proceeds remain undeployed as of Jun '26
• TRIS - Allocates IDR15 bn for share buyback and acquires Lifestyle Pratama
Market Commentary:
US equities closed higher on Wednesday as softer inflation data reinforced expectations of a less aggressive Federal Reserve tightening path. Investor sentiment was supported by a weaker-than-expected June PPI, which fell 0.3% MoM versus expectations for a flat reading, while annual producer inflation eased to 5.5%. The report followed Tuesday's benign CPI release, adding to evidence that inflationary pressures continue to moderate. Separately, New York Fed President John Williams said there are ‘encouraging reasons’ to believe inflation has peaked and should continue to ease over the coming quarters. The S&P500 gained 0.38%, Nasdaq rose 0.62% and DJIA advanced 0.29%. The latest inflation data prompted markets to further reduce expectations of aggressive Fed tightening, although CME FedWatch still implies around a 60% probability of one additional rate hike by October. While moderating inflation remains supportive for risk assets, inflation continues to run above the Fed’s 2% target, suggesting policymakers are likely to remain cautious.
In commodities, oil prices were little changed as renewed US strikes on Iranian military targets and the reinstatement of a naval blockade near the Strait of Hormuz heightened geopolitical tensions. WTI rose 0.3% to USD79.60/bbl, while Brent gained 0.3% to USD84.95/bbl.
In Asia, equity markets closed broadly higher on Wednesday as softer-than-expected US inflation eased concerns over further Fed tightening. South Korea's Kospi outperformed, rising 7.0%, while Japan's Nikkei gained 1.0% and MSCI's broadest Asia-Pacific ex-Japan advanced 2.4%. Meanwhile, China's 2Q26 GDP growth slowed to 4.3% YoY, below consensus expectations of 4.5%, underscoring persistent domestic demand weakness despite resilient exports and a modest improvement in retail sales, which grew 1.0% YoY in June, exceeding expectations.
The JCI edged up 0.04% to 6,041.972 despite net foreign outflows of IDR152.4 bn, bringing cumulative YtD foreign selling to IDR77.6 tn. We expect the JCI to be supported by improving global risk sentiment following softer US PPI data, which reinforced Tuesday's benign CPI print and strengthened expectations of a more accommodative monetary policy path. However, continued foreign outflows and the USD/IDR outlook are likely to remain key headwinds for market sentiment.
Regards,
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