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Weekly Insight

Fragile Momentum

27 July 2026
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Fragile Momentum
Fragile Momentum

Global Markets

Global markets trended lower throughout the week due to a sell off in chip and AI stocks, rising oil prices stemming from the Middle East conflict, a surge in U.S. Treasury yields, and new U.S. tariff policies even as U.S. PMI data indicated solid economic expansion. Next week, investor attention will focus on the FOMC decision, U.S. GDP and PCE inflation data, and the peak of the earnings season for major tech companies, which will determine the market’s direction, with volatility expected to remain high.


Indonesian Markets

Indonesia’s financial markets improved last week, although the JCI saw limited movement due to consolidation following Bank Indonesia’s decision to maintain its benchmark interest rate at 5.75%. As we enter the final week of July, investors’ attention is focused on the release of financial reports from major listed companies, domestic economic data, and global sentiment factors such as the Fed’s policies, commodity prices, and the rupiah’s movements.


Weekly Highlight on Economic Indicators


Our Take:

JCI rose +0.34% WoW to 6,196, with market capitalization up 1.13% to Rp10.870 trillion and daily trading volume increasing, driven by early-week momentum and Bank Indonesia’s policies; however, the recovery remains vulnerable due to net foreign selling, rising oil prices, and global uncertainty. The market’s direction will depend on the FOMC, the rupiah, and the performance of listed companies.

Investment recommendations for our investors (in order of preference):
Equity Fund > Balanced Fund > Fixed Income Fund > Money Market Fund


Author : KBVAM Investment Team

Source: Bloomberg, Infovesta, Trading Economics

DISCLAIMER :
INVESTMENT THROUGH MUTUAL FUNDS CONTAINS RISKS. PROSPECTIVE INVESTORS MUST READ AND UNDERSTAND THE PROSPECTUS BEFORE DECIDING TO INVEST THROUGH MUTUAL FUNDS. PAST PERFORMANCE DOES NOT REFLECT FUTURE PERFORMANCE.

This document was prepared based on information from reliable sources by PT KB Valbury Asset Management. PT KB Valbury Asset Management does not guarantee the accuracy, adequacy or completeness of the information and materials provided. PT KB Valbury Asset Management Indonesia is not responsible for any legal and financial consequences arising, whether against or suffered by any person or party and in any way deemed to be a result of actions taken on the basis of all or part of this document.