Morning Chatter

KBVS MORNING CHATTER
Monday, 29 June 2026

Headline News:
•    BREN – To disburse USD30.5 mn in dividends
•    SIMP - To disburse IDR403.03 bn in dividends at a 4.73% yield
•    JECC - To disburse IDR30.24 bn in dividends from FY25 net profit
•    MRAT - A new joint venture with Sugi Holding
•    YOII - Plans rights issue of up to 684.93 mn shares
•    LRNA – Plans to launch cargo service in 2H26F
•    KAEF – Encouraging local raw materials use
•    SMGR – Dissolves and liquidates Semen Indonesia Industri Bangunan (SIIB)
•    MMIX – Accelerates diaper factory construction
•    PKPK - To acquire a 49% stake in Deli Pratama Angkutan Laut for IDR890 bn

Market Commentary:
It was a rough end to the week for global markets, driven by a sharp sell-off in technology stocks and a tense, developing situation in the Middle East. Wall Street couldn't shake off the tech blues on Friday. The Nasdaq 100 (Fri, June 26th: -322.08pts, -1.09%) notched its previous third consecutive losing session as semiconductor stocks took a heavy beating. Adding to the uneasy sentiment over the weekend, geopolitical friction escalated. Following U.S. retaliatory strikes against Iranian military targets—sparked by Tehran's attacks on cargo ships in the vital Strait of Hormuz—President Donald Trump issued another stark warning on Sunday, threatening Iran with "annihilation" if hostilities continue.

The anxieties surrounding the tech sector were truly global, fueled by rising memory chip costs and growing skepticism over whether soaring AI valuations are sustainable. In Europe, equity markets slipped across the board, with major chipmakers and tech equipment suppliers bearing the brunt of the damage. In Asia market, the downturn turned into a rout on Friday. Investor fears that the recent tech rally had overextended led to massive sell-offs. The situation grew so intense in South Korea that the Kospi triggered a temporary trading halt after plunging 8% to curb panic selling. It ultimately closed the day down a painful 5.8%.

U.S. crude oil resumed its downward trend, slipping below USD70 a barrel (-2.34%). Gold managed to find some footing and gain ground, capitalized on a softening U.S. dollar. Even so, the precious metal is still pacing toward its fourth consecutive weekly loss. Meanwhile, though the dollar fell for a second straight day, it held onto enough earlier momentum to secure a winning week overall.

On domestic market, The Jakarta Composite Index closed 1.72% (-102.90pts) lower to close at 5,896.13. Net foreign sell around IDR302.24 bn with cumulative YTD reaching IDR85.96 tn.  As we have mentioned last week, the deferral of MSCI’s final classification assessment for Indonesia to November 2026 introduces an extended structural overhang. This delayed resolution exacerbates capital outflows amidst sticky global volatility and subdued various domestic noise and sentiment. Market confusion deepened at Friday’s close after an abrupt policy pivot on SAL fund from a hawkish liquidity drain to surprise liquidity injections. Foreign and domestic institutional flows remain on the sidelines ahead of next month's highly anticipated S&P Global Rating review. Market participants are waiting for the update of this week from inflation and Global Manufacturing PMI update, followed closely by next week's retail sales and consumer confidence indicators to gauge domestic demand resilience.

Regards, 
KBVS Research Team

 

Please click download button below for full report.

Download