Morning Chatter

KBVS MORNING CHATTER
Thursday, 04 June 2026

Headline News:
•    PYFA – Sales grew 11.8% yoy in 1Q26
•    HRUM – Allocates USD310 mn for capital expenditure
•    SGER – Targets IDR10.0 tn Revenue in 2026
•    RANC – Allocates IDR130 bn capex for new store expansions
•    GUNA - To Disburse IDR7.46 per share in Dividends
•    ALDO – Plans an IDR10 bn share buyback program
•    ZONE – Targets revenue and net profit around 10% yoy to 15% yoy in FY26
•    BLOG – To disburse a IDR70.96 bn in dividends
•    HRTA – To Disburse IDR40/Share in Dividends
 

Market Commentary:
US equities closed lower on Wednesday as escalating Middle East tensions and surging oil prices rekindled inflation concerns. The Dow (-1.2%), S&P500 (-0.7%) and Nasdaq (-0.9%) all finished in negative territory, with financials and technology leading the declines, while the Russell2000 underperformed. Investor sentiment weakened following renewed military exchanges between the US and Iran, raising concerns that a prolonged conflict could keep energy prices elevated and complicate the Federal Reserve's path toward policy easing. Reflecting the shift in rate expectations, markets are now pricing in a 41.1% probability of a Fed rate hike by December, up sharply from 9.1% a month ago.

Oil prices extended their rally after Iran reportedly struck Kuwait International Airport, while US Central Command stated that it had intercepted multiple Iranian missiles and drones before conducting retaliatory strikes on Qeshm Island in response to attempted attacks. Adding to concerns, Israeli Prime Minister Benjamin Netanyahu reiterated that both Israel and the US remain prepared to take further military action against Iran if necessary. Against this backdrop, WTI crude rose more than 2% to USD96.02/bbl, while Brent gained nearly 2% to USD97.81/bbl.

European equities also traded lower, with the STOXX600 declining -0.5%, as investors assessed the combined impact of geopolitical uncertainty and renewed trade policy risks. Sentiment weakened after reports that the US Trade Representative had proposed tariffs of up to 12.5% on imports from 60 economies over alleged forced-labor compliance issues, with the measures potentially affecting key trading partners including the EU, China and Japan.

Asian markets were broadly resilient on Wednesday, while the JCI declined -4.11% to 5,941.07, accompanied by foreign net outflows of IDR993.2 bn. We expect the JCI to remain under pressure in the near term, weighed by escalating geopolitical tensions, rising oil prices and persistent concerns over the USD/IDR outlook.

Regards, 
KBVS Research Team

 

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