Register / Sign in

Share prices

07/09/2020

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 4 September 2020. BDN financial editor Roger Willis reports.

USA — SPOOFED BY DODGY DERIVATIVES

The past month’s huge Wall Street rally, driven by leading new-tech stocks, came to an abrupt end in a welter of recriminations. It transpired this bubble had been quietly inflated by Japanese financial conglomerate SoftBank acquiring billions of dollars’ worth of equity derivatives — the largest trading volume ever in these option-to-buy contracts for the shares of individual companies. Once the revelation of such covert trickery became evident, a sell-off ensued and the bubble burst.            

All key New York indices were dragged down. The NASDAQ electronic exchange’s Composite, which primarily encompasses Silicon Valley superstars like Apple, Amazon and Tesla, lost more than 10% at one point. The NYSE’s benchmark S&P 500 closed 2.3% lower on a full-week basis. The Dow Jones Industrial Average sank by 1.8% and the S&P MidCap 400, where biker stocks reside, took a slightly more brutal 2.5% hit.            

HOG-OMETER — FLOP, FLIP AND FLOP

Unsurprisingly, given the general mood of confusion and rancour in US markets, volatile behaviour returned to assail Harley-Davidson’s share price — as reflected in wildly erratic Hog-ometer swings.            

Monday saw a sharp 2.6% retreat into 27-buck territory, followed by partial 1.2% recovery on Tuesday. And then Wednesday compounded brief optimism with a 4.2% upwards surge past the 29-dollar mark. But Harley failed to escape the subsequent overall collapse in sentiment, plunging by 3% on Thursday and a further 2.5% on Friday.             

Currency: dollar

Price

Week

Month

Harley-Davidson

27.65

-2.1%

+5.5%

Polaris Industries

98.70

-5.3%

-6.4%

Textron

38.94

-2.6%

+3.6%

EUROPE — EYES ACROSS THE POND 

Disreputable dealing on the other side of the Atlantic was duly noted by negative responses across European markets. As a result, Frankfurt’s Xetra Dax index had fallen by 1.5% at end of play.         

However, sell-off targets were mainly reserved for the aforementioned techies with secondary stock quotes in Europe. Motorcycling-related automotives remained shiny side up. Primarily bike-focused Pierer Mobility boasted the biggest gain, after being trapped around a €49 marker for several weeks.      

Currency: euro

Price

Week

Month

BMW

61.77

+3.7%

+11.8%

Volkswagen

152.60

+0.2%

+6.3%

Pierer Mobility

51.50

+5.1%

+5.1%

The Borsa Italiana’s MIB index in Milan took a harder knock than Germany’s Dax, 2.3% down. But Piaggio staged a marginal recovery from its loss in the previous week. Energica, on the other hand, carried on losing.

Currency: euro

Price

Week

Month

Piaggio Group

2.43

+0.4%

-2.4%

Energica Motor

1.89

-1.6%

-3.6%

 

JAPAN — CELEBRATING A SCOOP? 

Admiration for indigenous slicker SoftBank’s highly profitable success at “shorting” US tech stocks may have been a big confidence-booster for Japanese investors, because Tokyo’s Nikkei 225 was the only major market index worldwide to show a positive result over the past week, adding 1.4%. Three of Japan’s four motorcycle manufacturers joined the party.                                                                                                                                                                                                           

Currency: yen

Price

Week

Month

Honda

2756

+1.6%

+8.2%

Yamaha

1680

+1.4%

+0.3%

Suzuki

4590

+6.9%

+17.2%

Kawasaki

1475

-0.6%

+3.3%

INDIA — REALITY CHECK

Mumbai’s BSE Sensex 30 stock index flipped from a fortnight of steady gains to a 2.8% weekly loss as the enormity of Indian Covid-19 infections and deaths became inescapable. Although Honda’s wholly-owned and therefore unlisted subsidiary managed a slight bike sales recovery in August, indigenous listed motorcycle manufacturers were not so lucky and their share prices were punished accordingly. Mahindra wasn’t really an exception to this rule, because it makes most of its money from SUVs, trucks and tractors.           

Currency: rupee

Price

Week

Month

Hero MotoCorp

2915.20

-4.7%

+7.7%

Bajaj Auto

2883.20

-4.3%

-3.9%

TVS Motor

433.90      

-3.5%

+2.9%

Eicher Motors

2180.85

-1.5%

N/A

Mahindra

632.00

+0.1%

+5.3%

CHINA — LACK OF DIRECTION

Shanghai’s SSE Composite index turned firmly negative, dropping by 1.4% after three weeks of fairly minor gains. No clear reason for such a change in fortunes stood out. Among the ten listed Chinese bike producers, half of them were on the back foot. Benelli parent Qianjiang stood out as a champion, compounding its run of extraordinary gains. This week’s great leap forward coincided with a leaked picture of what looks like a complete pre-production prototype of the baby Harley-Davidson it is to build on contract. Lifan’s parallel (and even bigger) boost can be discounted, though, because it simply wiped out the previous week’s severe loss.        

Currency: yuan

Price

Week

Month

Qianjiang

26.69

+23.9%

+58.1%

Zongshen

9.04

+0.2%

-6.6%

Sundiro

4.09

+3%

N/A

CETC Energy    

6.03

-2.3%

-6.9%

Lifan

4.55

+28.2%

-2.6%

Loncin

4.14

-4.6%

-7%

Linhai

7.52

-1.6%

+3.7%

Guangzhou Auto

10.12

-3.3%

-1.9%

CFMoto

125.77

+2.9%

+31%

 

Currency: HK dollar

Price

Week

Month

Jianshe

4.14

N/A

-2.4%