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Share prices

14/09/2020

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 11 September 2020. BDN financial editor Roger Willis reports.

USA — LOSING STREAK

The sell-off on US markets, provoked by a massive options-trading “short” on leading American tech companies by Japan’s SoftBank, stretched to a fortnight, towing all key indices downwards for a second week. The tech-heavy NASDAQ Composite led this rout, falling by 4.1%. The S&P 500 and Dow Jones Industrial Average respectively lost 2.5% and 1.7%, while the second-tier S&P MidCap finished 2.3% lower. At one point, electric vehicle champion Tesla’s huge market capitalisation was slashed by a quarter. On Friday, commentators described this as the worst week for tech shares since the Coronavirus panic adjustment in March. It emerged that SoftBank had trousered a $4bn profit from its wizard wheeze.            

The effect went far beyond Silicone Valley, reducing value for a host of old-school metal bashers too. Among biker shares, Harley was relatively unscathed by close of play (see below). But Polaris suffered a second consecutive substantial weekly spanking.            

HOG-OMETER — SNAKES AND LADDERS?

Our Hog-ometer volatility gauge monitoring Harley-Davidson’s erratic share movements lay idle on Monday, owing to a US public holiday. But normal service resumed on Tuesday with a 1.5% recovery from the previous week’s decline — bucking generalised market gloom.            

More of the same occurred on Wednesday, a further 2.8% rise pushing the price to near the top of a 28-buck range. Then punters started to tear up their betting slips. An abrupt 2.1% drop on Thursday was followed by Friday’s 1.7% retreat back into 27-dollar ignominy, leaving Harley almost back where it had started. The 33-dollar target analysts had promoted for early September has faded into oblivion.            

Currency: dollar

Price

Week

Month

Harley-Davidson

27.76

+0.4%

-0.7%

Polaris Industries

92.67

-6.1%

-10.6%

Textron

38.74

-0.5%

+0.6%

EUROPE — THE TOUGH GET GOING AGAIN 

Shrugging off shenanigans on the other side of the Atlantic and rampant second-wave Covid infection surges across a broad swathe of European countries, including the UK, euro-denominated markets looked to a fresh batch of positive economic indicators allied to governmental business support initiatives — and mostly bought into optimism. Frankfurt’s Xetra Dax index therefore rose by 2.8%.         

Revelations of very strong motorcycle and scooter demand data for August, paralleled by some improvement for car sales, helped to boost automotive/biker prospects everywhere. The only one not to benefit in Northern climes was KTM, Husqvarna and GasGas parent Pierer Mobility, its share price static in almost non-existent trading volumes on the Frankfurt, Vienna and Zurich bourses.      

Currency: euro

Price

Week

Month

BMW

64.01

+3.6%

+10.6%

Volkswagen

159.20

+4.3%

+6.3%

Pierer Mobility

51.50

N/A

+3.8%

The Borsa Italiana’s MIB index in Milan put on 2.2%, more-or-less reversing the previous week’s losses. Piaggio improved to a lesser degree than the market average. Despite Energica releasing some upbeat sales recovery data, the electric sports bike manufacturer’s share price took a cue from Pierer and flat-lined.

Currency: euro

Price

Week

Month

Piaggio Group

2.46

+1.2%

-2.8%

Energica Motor

1.89

N/A

-5.5%

JAPAN — AVERSE TO RISK 

Japanese investors decided that SoftBank’s highly profitable but high-risk antics in America were inappropriate for a supposedly reputable financial institution and inflicted severe damage to its share price, wiping nearly $8bn off the investment bank’s capitalisation. Such negative sentiment knocked-on to the Nikkei 225 index in Tokyo, which struggled to achieve a gain of just 0.9%. Indigenous motorcycle stocks finished up all over the place, with no sense of direction.                                                                                                                                              

Currency: yen

Price

Week

Month

Honda

2654

-3.7%

-2.5%

Yamaha

1695

+0.9%

-4.9%

Suzuki

4399

-4.2%

+4.9%

Kawasaki

1567

+6.2%

+2.9%

INDIA — SALES FIGURES LIFT

Recovery in consumer demand as India’s festive season approaches usurped concerns about the pandemic butcher’s bill. The BSE Sensex 30 stock index in Mumbai responded accordingly with a bounce back to 1.3% positivity. Better-than-expected sales results for some bike producers were reflected in their share-price movements. Poorer performers went the other way.     

Currency: rupee

Price

Week

Month

Hero MotoCorp

2992.25

+2.6%

+6.7%

Bajaj Auto

2916.35

+1.1%

-2.4%

TVS Motor

444.25      

+2.4%

+6.3%

Eicher Motors

2160.30

-0.9%

+7.3%

Mahindra

614.25

-2.8%

N/A

CHINA — CONFIDENCE ON HOLD

Shanghai’s SSE Composite index compounded the previous week’s 1.4% loss with a 2.8% decline this time around, although the mood was lightening by Friday. Our BDN Ten scratch index of listed Chinese bike manufacturers finished slightly sour, 0.5% down. On a monthly basis, Benelli parent Qianjiang — itself a subsidiary of Li Shufu’s gigantic global Geely Holdings operation — was miles ahead, closely pursued by Pierer Mobility associate CFMoto. We’re still waiting to see if the former consummates its planned manufacturing relationship with Harley-Davidson.         

Currency: yuan

Price

Week

Month

Qianjiang

26.10

-2.2%

+62.3%

Zongshen

8.28

-8.4%

-12.8%

Sundiro

3.78

-7.6%

-7.4%

CETC Energy    

5.80

-3.8%

-12.3%

Lifan

5.22

+14.7%

+27.9%

Loncin

4.12

-0.5%

-8.4%

Linhai

7.13

-5.2%

-4.8%

Guangzhou Auto

10.14

+0.2%

-5%

CFMoto

129.00

+2.6%

+47%

 

Currency: HK dollar

Price

Week

Month

Jianshe

4.35

+5.1%

+2.1%