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Share prices

24/08/2020

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 21 August 2020. BDN financial editor Roger Willis reports.

USA — FAKE NEWS

Although the New York Stock Exchange’s blue-riband S&P 500 index pared back to finish on a very modest 0.7% gain, it had hit record highs earlier in the week, hailed by some commentators as proof of the US economy’s underlying good health. This was, of course, nonsense because of distortion due to a handful of tech giants outperforming the market by a huge margin.            

The S&P 500’s top five companies — Apple, Microsoft, Amazon, Alphabet (Google) and Facebook — are actually responsible for more than a quarter of NYSE ascension since the nadir of late March. Apple claimed weekly stardom by becoming the first company in history to surpass a two-trillion-dollar valuation. But average stock prices in the index are 28% below peak.            

In sharp contrast, the second-tier S&P MidCap 400 index, representing lower ranks of industrial firms fighting on the front line of American economic woes, fell by 2%. Harley-Davidson, Polaris and Textron are all in the MidCap league.            

HOG-OMETER — TURNING NEGATIVE

Harley-Davidson certainly didn’t break any records, as four sessions of timid Hog-ometer betting in typical yo-yo mode illustrated — 0.9% up on Monday, 0.8% down on Tuesday, 0.7% up on Wednesday and then 1.2% down on Thursday. A further 0.9% decline followed on Friday. Analysts noting that US motorcycle sales recovery is now cramped by a grievous shortage of dealer inventory may have had an influence.           

Currency: dollar

Price

Week

Month

Harley-Davidson

27.61

-1.3%

-5%

Polaris Industries

100.83

-2.2%

+5.6%

Textron

37.60

-2.3%

+9.5%

EUROPE — COVID REPLAY 

If US investors were looking for false positives in the face of another jump in jobless benefit claims and gloomy Federal Reserve prognostications, their European cousins were recognising harsh reality. Upbeat economic sentiment across the eurozone is now being undermined by a surge in fresh Covid infections in many European countries, reimposing travel restrictions and potentially stalling recovery.        

Frankfurt’s Xetra Dax index lost 1.1% and every motorcycle-related share listing in Europe sank. After reversing a fortnight of losses in the previous week, KTM parent Pierer dropped again, by the largest margin of the lot.      

Currency: euro

Price

Week

Month

BMW

56.67

-2.1%

-5.5%

Volkswagen

147.60

-1.5%

-1.7%

Pierer Mobility

48.40

-2.4%

-2.8%

The Borsa Italiana’s MIB index in Milan was also on the back foot, falling by 1.7%. Piaggio and Energica bracketed that market average.

Currency: euro

Price

Week

Month

Piaggio Group

2.48

-2%

+2.9%

Energica Motor

1.98

-1%

-1.5%

JAPAN — WARNING CALL 

A depressing batch of year-to-date central bank data alerted the Japanese to the increasingly dire condition their export-led economy and Tokyo’s Nikkei 225 stock index turned sour, sliding 1.6% down after a couple of positive weeks. Among the four indigenous motorcycle manufacturers, Suzuki escaped with the least punishment.                                                                                                                                                                                                           

Currency: yen

Price

Week

Month

Honda

2650

-2.6%

-4.4%

Yamaha

1669

-6.4%

-0.4%

Suzuki

4190

-0.1%

+12.3%

Kawasaki

1468

-5.6%

-9.4%

INDIA — HOPE SPRINGS ETERNAL

Presumably driven by sales figures, four out of the five major Indian motorcycle manufacturers added value, three of them by muscular amounts. And bouncing back from a previous gloomy week, Mumbai’s BSE Sensex 30 stock index reflected a suddenly brighter overall investor mood, irrespective of a rapidly rising Covid death toll, by putting on 1.5%.     

Currency: rupee

Price

Week

Month

Hero MotoCorp

3033.45

+8.2%

+10.7%

Bajaj Auto

3053.15

+2.2%

+2.3%

TVS Motor

453.30      

+8.4%

+13.9%

Eicher Motors

21,702.40

+7.7%

+4.3%

Mahindra

609.80

-0.8%

+1.9%

CHINA — INSCRUTABLE?

Shanghai’s SSE Composite index did marginally better over the past week, closing with a 0.6% rise. But China’s confidence is still tempered by a range of uncertainties — from its debatable depth of recovery to simmering geo-political tensions. On the face of it, our BDN 10 index of listed Chinese motorcycle producers flipped from the previous week’s losses to an apparently strong 3.7% increase. But this was completely skewed by large gains for two of them, Benelli parent Qianjiang and star turn CFMoto. Half of the total actually lost ground and one, Loncin, was dead flat.        

Currency: yuan

Price

Week

Month

Qianjiang

19.27

+19.8%

+9%

Zongshen

9.16

-3.6%

+15.7%

Sundiro

4.05

-0.7%

+18.8%

CETC Energy    

6.35

-3.9%

+5%

Lifan

4.37

+7.1%

+2.8%

Loncin

4.50

N/A

+10%

Linhai

7.68

+2.5%

+10.8%

Guangzhou Auto

10.43

-2.2%

+13.1%

CFMoto

105.98

+20.8%

+17.8%

 

Currency: HK dollar

Price

Week

Month

Jianshe

4.12

-3.3%

-1.4%