Morning Chatter

KBVS MORNING CHATTER
Wednesday, 6 May 2026

Headline News :
•    SMGR – First export of 11,275 MT of cement to France
•    SMRA – Booked 20% net profit decline in 1Q26
•    PGEO - Targeting major expansions ahead
•    BIRD – 1Q26 revenue grew 11.6% yoy
•    HAJJ – 1Q26 revenue down to IDR287.64 bn (–11.5% yoy)
•    BRPT – 1Q26 net profit skyrocketed 462.5% yoy
•    SSMS – 1Q26 net profit grew 1.54% yoy
•    DCII – Secured IDR17 tn credit facility
•    TPIA – Lifted force majeure on polymer supply
•    TUGU – 1Q26 net profit reached IDR265.62 bn

Market Commentary :
US equities closed higher on Tuesday (5/5), with the S&P500 (+0.81%) and Nasdaq (+1.03%) reaching record highs, while the Dow also advanced (+0.73%). Risk sentiment was supported by geopolitical de-escalation, as Washington confirmed that the US–Iran ceasefire remains intact, easing concerns over escalation risks in the Strait of Hormuz. This helped stabilize broader risk assets and triggered a sharp pullback in oil prices, with Brent down ~4% to USD109.87/bbl and WTI at USD102.27/bbl. 
On fundamentals, earnings remained a key tailwind, with S&P500 1Q26 earnings growth tracking ~28% YoY, the strongest pace since 2021. AMD gained ahead of results, with expectations of ~33% revenue growth, while large-cap AI beneficiaries continued to anchor index performance. 
Macro data were mixed but broadly consistent with a still-resilient cycle: job openings eased modestly in March but remained stable overall, while the ISM Services PMI softened slightly to 53.6 (vs. 53.7 est.). In FX, the USD edged marginally lower (DXY -0.03% to 98.437) amid shifting geopolitical headlines, while the EUR and GBP rose ~0.1%. The yen traded softer in subdued conditions following suspected intervention signals from Tokyo last week.
European equities also advanced, with the STOXX600 up +0.7%, driven by broad-based gains across Frankfurt, Paris and Milan. The FTSE100 lagged (-1.4%), weighed by defensive rotation and sensitivity to the decline in oil prices.
In Asia, equities were softer amid weaker risk appetite, though Indonesia remained an outlier. The JCI rose 1.22% to 7,057.11, supported by a stronger 1Q26 GDP print of 5.61% YoY, driven by a sharp +21.8% YoY surge in government consumption. Today, the JCI could continue to close higher, supported by lower global oil prices amid the ongoing ceasefire relating to Middle East geopolitical tensions and a weaker USD index.

Regards,
KBVS Research Team

 

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