Morning Chatter

KBVS MORNING CHATTER
Thursday, 21 May 2026

Headline News :
•    CSRA – Targets a IDR300 bn net profit in FY26
•    ERAL – To add several fashion brands in 2026
•    IRSX - Secures OTT license for 2026 FIFA world cup broadcasts
•    SUPR - Secures go-private approval with IDR45,000 tender offer price
•    RMKE – Plans 1:5 stock split
•    BUAH – Plans to open a new cold storage in Lampung
•    DNAR – Prepares strategies to increase its free float
•    VKTR – Targets Transjakarta's 10,000 EV buses as key growth catalyst
•    TCID – To disburse IDR15.28 bn in dividends

Market Commentary :
US equities closed higher on Wednesday, with the Dow (+1.31%), S&P500 (+1.08%) and Nasdaq (+1.55%) as easing geopolitical tensions in the Middle East triggered a sharp pullback in oil prices and Treasury yields, improving overall risk sentiment. Optimism surrounding a potential US-Iran agreement reduced fears of prolonged supply disruptions after President Donald Trump indicated negotiations were nearing completion, while still warning of escalation risks should talks collapse. Supporting the improving backdrop, two Chinese oil tankers were reportedly seen exiting the Strait of Hormuz, signaling tentative normalization in regional shipping activity. Despite the stronger market tone, policy uncertainty remains elevated, with Fed funds futures now pricing roughly 50% odds of another Fed hike by December, marking a sharp shift from earlier expectations of two rate cuts this year.
Brent crude fell -5.6% to USD105.02/bbl, while WTI declined -5.7% to USD98.26/bbl. Meanwhile, the US 10-year Treasury yield dropped -9.4bps to 4.576% after recently reaching war-driven highs. In FX, the US dollar index weakened -0.22% to 99.09 after touching a six-week high, while gold rose +1.4%.
European equities also closed higher, with the Stoxx600 rising +1.5%, supported by softer-than-expected UK inflation data. UK April CPI moderated to 2.8% YoY, below both consensus expectations of 3.0% and March’s 3.3%.
Asia-Pacific markets, however, closed mostly lower, with weakness concentrated in Japan, Korea and Australia. In Indonesia, despite Bank Indonesia raising its benchmark rate by 50bps to 5.25% yesterday, the JCI declined -0.82% to 6,318.50, although foreign investors remained net buyers with inflows of IDR249.2 bn. Near term, we expect the JCI to rebound, supported by improving global risk sentiment, lower oil prices and a softer US dollar backdrop, which should help stabilize the USD/IDR outlook.

Regards,
KBVS Research Team

 

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