Morning Chatter

KBVS MORNING CHATTER
Thursday, 5 March 2026

Headline News :
•    Banking - NPL rise in Jan26, banking sector on alert for geopolitical risks
•    BSDE – Targets IDR10.0 tn FY26F pre-sales
•    BBKP - KB Bank selectively disburses credit to the coal sector
•    LPCK – Robust FY25 revenues on accelerated handovers
•    LPPF – Proposed dividend of IDR250 per share
•    BYAN - Plans up to USD300 mn for capex in 2026
•    PYFA – Increasing injectable production capacity
•    TEBE - Reports slight decline in net profit to IDR132.72 bn (-0.35% yoy) for FY25

Market Commentary :
US equities closed higher on Wednesday as geopolitical concerns eased following reports that Iran signaled openness to talks and President Trump pledged measures to stabilize oil markets, including naval escorts through the Strait of Hormuz. The de-escalation narrative helped calm inflation fears tied to energy disruption, supporting a rebound in risk appetite. 
The Nasdaq rose 1.29%, extending gains since the weekend strikes, while S&P500 advanced 0.78%, remaining near January’s all-time high. The Dow added 0.49%. Tech led the rally as investors rotated back into names that had sold off sharply in February. Meanwhile, the VIX declined ~10% to around 21, signaling reduced near-term volatility expectations. Energy stocks underperformed as oil-price fears moderated, with ExxonMobil (-1.3%) and ConocoPhillips (-2.4%) reversing recent gains. 
Brent crude settled flat at USD81.40/bbl, its highest level since January 2025. Macro data were supportive: private payrolls beat expectations, services activity remained firm, and the Fed’s latest report pointed to modest expansion, stable employment, and resilient sentiment. Near term, market direction remains highly sensitive to geopolitical headlines and oil-price stability, with inflation risk the key swing factor for volatility. 
Asia-Pacific markets rebounded on Thursday after several sessions of heavy selling, tracking Wall Street’s gains and easing oil concerns. Japan led the recovery, with the Nikkei225 surging 4%, while South Korea’s Kospi jumped as much as 11% following Wednesday’s 12% decline. Australia’s S&P/ASX200 edged up 0.4%, and Hang Seng futures signaled a firmer open. 
Yesterday, the JCI fell 4.57% to 7,577.06, dragged by TLKM, AMMN, BRMS, BBCA, and DCII. Foreign investors recorded net sells of IDR118.08bn, concentrated in BBCA, BBNI, ANTM, AMMN, and BBRI. Fitch revised Indonesia’s outlook to Negative (from Stable) while affirming the ‘BBB’ rating, citing rising policy uncertainty and weaker policy credibility that could pressure fiscal metrics and investor confidence.

Regards,
KBVS Research Team

 

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