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Share prices

11/08/2020

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 7 August 2020. BDN financial editor Roger Willis reports.  

USA — BRIEFLY BRIGHTER

A straight run of four consecutive upbeat sessions pushed New York market indices higher, as monthly US unemployment figures for July fell much faster than expected. But this mood weakened by Friday, as investors realised it would still take the best part of a year to get the 13 million workers displaced since February off the dole, even without any further disruptive factors. Apart from these economic restraints, a backdrop of increasing US-China tensions as the weekend approached didn’t help either.            

Nevertheless, Wall Street finished with firm gains. The benchmark S&P 500 put on 2.5%, while the Dow Jones Industrial Average rose by 3.8% and S&P’s MidCap 400 posted a 4% improvement. 

         

HOG-OMETER — CASH IN, CASH OUT

After the previous week’s sharp 10.5% loss, MidCap member Harley-Davidson’s share price reverted to the sort of yo-yo behaviour that gave birth to our Hog-ometer. On Monday, a 1% uptick promised recovery, immediately followed by a 1.5% decline on Tuesday, taking the stock back down into 25-buck territory. Sentiment promptly flipped again on Wednesday, adding 2.8%. That didn’t last, of course, as Thursday wiped 2.5% off the price. And then Friday gifted 1% positivity. The weekly sum total was pretty much back where it had started.         

High-profile investment analysts who had been banging out “buy” recommendations throughout July have now slunk off into the undergrowth. Their predictions that Harley shares would climb up past the 33-dollar mark by early August, on the back of optimism generated by new-broom senior management, proved to be worthless.             

Currency: dollar

Price

Week

Month

Harley-Davidson

26.21

+0.7%

-0.7%

Polaris Industries

105.43

+1.7%

+12.1%

Textron

37.58

+7.6%

+21%

EUROPE — A FIRMER MOOD 

Having swallowed a spate of massive corporate losses and dire economic news over the past couple of weeks, European investors began to look for positives — and found some. In Germany, Markit purchasing manager indices (PMIs) showed business confidence strengthening on the back of latent demand for consumer durables post-lockdown. These indicators suggest a lift for the automotive sector in particular, with powered two-wheelers hopefully going along for the ride.       

Frankfurt’s Xetra Dax index rose by 2.9% and Volkswagen was a much bigger beneficiary of the mood swing. Data showing its crucial high-volume sales of Audi cars in China are roaring ahead certainly helped. BMW advanced too, to a lesser extent. KTM parent Pierer Mobility, on the other hand, retreated for a second week. It’s possible that analysts have now noted the disgraceful porkies told in Pierer’s preliminary half-year results statement, appertaining to fictional motorcycle sales volume claims.      

Currency: euro

Price

Week

Month

BMW

55.27

+1.2%

-5.9%

Volkswagen

143.60

+8.1%

-2.5%

Pierer Mobility

49.00

-0.4%

+4.3%

Similar confidence-enhancing tendencies were visible in Italy as well. The Borsa Italiana’s MIB index in Milan posted a 2.2% increase. Piaggio more than doubled its money versus that. Energica, with its MotoE promotional bikes now back on TV screens at revived MotoGP rounds, also made a reasonable gain.

Currency: euro

Price

Week

Month

Piaggio Group

2.49

+5.1%

+6.4%

Energica Motor

1.96

+2.1%

-3.4%

JAPAN — MYSTERIES ABOUND 

An almost inexplicable turnaround in confidence was also evident in Japan, where Tokyo’s Nikkei 225 index achieved a 2.9% hike. All four indigenous motorcycle manufacturers had published their latest lamentable Coronavirus-afflicted corporate results during the past week. And three of them were rewarded, for honesty at least. Yamaha and Suzuki, in particular, copped really impressive share-price boosts.                                                                                                                                                                                                           

Currency: yen

Price

Week

Month

Honda

2548

+1%

-3.4%

Yamaha

1675

+9.1%

3.1%

Suzuki

3917

+12.8%

+7.3%

Kawasaki

1428

-0.4%

-4%

INDIA — OBLIVIOUS TO OBLIVION?

Indian punters placing their bets on the Bombay Stock Exchange in Mumbai appear to be insulated from death and destruction occuring outside the walls of this plush institution. Its BSE Sensex 30 stock index put on 1.2%, shrugging off the previous week’s negativity. Three of the five major Indian bike producers boasted share price rises. And the two losers didn’t lose much. TVS and Royal Enfield parent Eicher did especially well.    

Currency: rupee

Price

Week

Month

Hero MotoCorp

2706.20

+1.1%

+0.9%

Bajaj Auto

3001.70

-0.1%

+3.7%

TVS Motor

421.50       

+8.8%

+9.3%

Eicher Motors

21,807.35

+5.7%

+12.1%

Mahindra

600.45

-1%

+8.2%

CHINA — FULL THROTTLE

Shanghai’s SSE Composite index continued to climb, by 1.3% in the past week, reflecting the fast-track recovery of China’s economy.      

The BDN 10, our index of listed Chinese motorcycle manufacturers, only beat it by a modest degree, 1.9% up. Reversals for three recent star performers — Benelli parent Qianjiang, Zongshen and CFMoto — shouldn’t be misinterpreted. They were almost certainly due to straightforward profit-taking.    

Currency: yuan

Price

Week

Month

Qianjiang

16.88

-7.8%

+0.8%

Zongshen

9.68

-0.6%

+19.4%

Sundiro

4.09

+9.1%

+34.1%

CETC Energy    

6.48

+8.2%

+6.9%

Lifan

4.67

+6.6%

+2.9%

Loncin

4.45

+3.2%

+9.6%

Linhai

7.25

+4.3%

+7.2%

Guangzhou Auto

10.32

-4.4%

+7.1%

CFMoto

95.99

-1.2%

+16.4%

 

Currency: HK dollar

Price

Week

Month

Jianshe

4.24

+1.7%

-5.4%