Morning Chatter

KBVS MORNING CHATTER
Thursday, 4 December 2025

Headline News :
•    RAJA - 9M25 : solid topline growth, lower parent profit due to forex losses and RATU divestment
•    UNTR – Diversifies into nickel processing via new subsidiary
•    ADHI – To maintain performance through year-end
•    KLBF – Rainy season boosts pharmaceutical and consumer sales
•    ESSA – Targets to increase production in 2026, despite 9M25 decline
•    BIRD – Strengthens integrated mobility ecosystem via Cititrans
•    MYOR - Issues IDR827.55 bn AA-rated bond
•    BEEF - Expands into new business lines to support MBG Program
•    MPXL – Adding new business lines
•    PJAA – To complete 65 ha reclamation project

Market Commentary :
US equities ended higher on Wednesday (Dow +0.86%, S&P500 +0.30%, Nasdaq +0.17%) as the resumption of economic data releases reinforced expectations for a 25bps Fed cut next-week, though gains were partially capped by weakness in Microsoft. 
The prolonged 43-day government shutdown had stalled official data flow, but clearing backlogs, combined with private-sector indicators, kept markets focused on softening macro momentum. The ISM Services Index was broadly stable at 52.6 (October: 52.4), while price pressures eased modestly. ADP data showed an unexpected decline in private payrolls, increasing reliance on non-governmental indicators ahead of delayed PCE and official labor reports. 
Comments from market participants suggested the Fed now has sufficient cover to shift to a more dovish tone amid signs of weakening labor conditions. Futures pricing for a 25bps cut rose to 89% (vs. 87% intraday). Microsoft lagged (-2.5%) amid conflicting reports over AI sales quota adjustments, weighing on the tech sector (-0.4%). 
Asian equities were mixed yesterday, with Japan outperforming on strong tech momentum. SoftBank rallied over 6%, leading gains in chip-exposed names, helping lift the Nikkei 1.14%. Kospi rose 1.04% as revised 3Q GDP was nudged higher to 1.8% yoy, while ASX200 gained 0.18% despite a softer-than-expected 3Q GDP print (2.1% yoy). In contrast, Hong Kong and China underperformed. 
Oil prices rebounded modestly, with Brent +1.3% to USD63.2 and WTI +1.5% to USD59.5, after Russia signaled that five-hour negotiations with US envoys failed to advance a Ukraine peace framework that could pave the way for easing sanctions on its oil sector. 
The JCI slipped 0.06% to 8,611.79, with a modest IDR70.4bn net foreign inflow. FILM, BMRI and INET led foreign buying, while BBRI, CDIA and BUMI saw the largest foreign outflows.

Regards,
KBVS Research Team

 

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