The Gibbons Report: 3 June 2026

IRAN WAR COSTS HIT S.A. South Africa’s business sentiment has weakened in the second quarter due to fresh pressures from the war in Iran. That’s according to the Rand Merchant Bank/Bureau for Economic Research business confidence index, which has dropped eight points to 39 in the three months to the end of the second quarter. That’s the weakest level since the third quarter of last year. RMB says that while the decline was broad-based, it was largely dragged down by consumer-facing industries. That’s higher fuel prices and higher interest rates. TOP U.S. BANK SAYS S.A. DEAL FLOWS LOOKING GOOD Despite that, Bank of America says it expects strong deal-making activity here to continue this year, irrespective of ongoing global volatility. BofA’s local head, Anthony Knox, says the lender is concluding transactions in the technology, communications, digital, retail, and infrastructure sectors, as well as elsewhere in the region, because the longer-term investment remains attractive to local and global investors. Knox says South Africa has excellent, well-run companies, with management teams able to operate very effectively in uncertain and volatile environments. Valuations, he adds, remain attractive relative to many international markets. NATIONAL TREASURY CONFIRMS STATE FINANCES MENDING Also helping is confirmation from National Treasury DG Duncan Pieterse that South Africa has posted a third consecutive primary budget surplus. This, he says, underscores the government’s commitment to repairing state finances. The final figures came in at 1.1% of GDP – better than the February forecast of 0.9%. Tax and non-tax revenue were also higher than expected. TENCENT BOOSTS NASPERS, JSE Two big winners on the JSE at the bell last evening – Naspers and subsidiary Prosus. Naspers closed up more than 10% on a similar surge in its biggest holding – Chinese internet giant Tencent. Subsidiary Prosus, through which Ten Cent is held, closed up 8%. That’s because Ten Cent, according to the Financial Times in London, is about to launch a prototype AI agent for its ubiquitous WeChat app. That dragged Hong Kong up more than 2.5% yesterday, and the JSE All Share closed up 1.8% - the Top 40 up 2%. Contrast that with London’s FTSE – up just 0.3%. In New York, more record highs – just. The Dow was up 0.5%, but the S&P 500 was up 0.1% and the Nasdaq only a fraction above flat. Markets are reacting to reports of fresh clashes between the US and Iran, which leave the very shaky ceasefire in the balance. Tokyo this morning is up 2.9% - Hong Kong down 1.7% - Sydney up 0.7%. Brent Crude oil has also started to edge back up – now just under $97 per barrel. The US dollar is unchanged at $1.16 to the euro – the rand is $16.25 to the dollar, R18.90 to the euro, and R21.88 to sterling. Gold - $4,484 – platinum $1,935 – and Bitcoin - down to just $65,650.