Register / Sign in

Share prices

07/12/2020

 

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

USA — BELIEF IN FATHER CHRISTMAS

Once again, American investors were swept up in a wave of optimism. Covid vaccine euphoria blending with the promise of an economic stimulus package, as a bi-partisan consensus returned to the US Congress, drove market indices to a second week of record highs. “Normalisation” was the latest buzzword among analysts.

New York’s blue-chip S&P 500 put on 1.7%, while the Dow Jones Industrial Average added 1% to a weekly close above the 30,000-point watershed for the first time in history. S&P’s MidCap 400 climbed by 1.8%. 

However, while two of the three powersports contenders with MidCap tickers — Polaris and Textron — made modest advances roughly in line with their index, Harley-Davidson significantly didn’t.               

HOG-OMETER — NOT THE SEASON TO BE JOLLY

The Hog-ometer, like Santa, had finally sussed who’s naughty or nice, After nine straight weeks of net share-price growth, Harley began to decline. 

There had been signs of investor discomfort late in the previous week, when the price had slid back from an earlier two-year peak of $41.43 to close on $40.89. That trend continued on Monday with a 1.5% fall. Tuesday’s slight 0.5% recovery didn’t do much to alter direction. Then a sharper 2% drop on Wednesday took it back below 40 bucks, before losing another 0.5% on Thursday. 

Friday’s marginal 0.3% rise capped three sessions in 39-dollar ignominy. Harley was apparently no longer on the hot-prospects guest list.                       

Currency: dollar

Price

Week

Month

Harley-Davidson

39.60

-3.2%

+17.9%

Polaris Industries

97.00

+1.5%

-0.8%

Textron

47.80

+2%

+23.1%

EUROPE — LACKING DIRECTION 

Shrugging off consistently strong market recovery through most of November, European stocks abruptly broke ranks with the upbeat US mood as December dawned. Frankfurt’s Xetra Dax index sank to the negative side of flat, 0.3% down. Little impact on biker-related Teutonic enterprises was discernible, though.    

BMW more than recovered from its previous week’s reversal. Volkswagen suffered a second consecutive minor loss. KTM parent Pierer extended its uninterrupted run of gains for a fifth week.     

Currency: euro

Price

Week

Month

BMW

74.85

+2.6%

+17.7%

Volkswagen

160.20

-0.6%

+11.3%

Pierer Mobility

55.00

+1.9%

+5.8%

The Borsa Italiana’s MIB index in Milan was more firmly negative than German sentiment, falling by 0.8%. However, Energica continued its recovery for a second week, albeit to a smaller degree, while Piaggio shares flatlined again.           

Currency: euro

Price

Week

Month

Piaggio Group

2.68

N/A

+11.2%

Energica Motor

1.98

+3.1%

+13.8%

JAPAN — THE TOUGH GET GOING 

Japanese confidence was also toned down. But Tokyo’s Nikkei 225 index remained positive by 0.4% — compared to a world-beating 4.4% in the previous week. Quarterly results were still firmly in play among indigenous motorcycle manufacturers. Honda and Yamaha, both of which are rapidly recovering Covid-shrivelled profitability, continued to add value at pace. Suzuki and Kawasaki, on the other hand, are stained with red ink and struggling to escape from those losses — therefore attracting less investor enthusiasm.                                                 

Currency: yen

Price

Week

Month

Honda

3130

+5.1%

+20.9%

Yamaha

2226

+10.1%

+45.5%

Suzuki

5600

-1.6%

+12.4%

Kawasaki

1602

+0.8%

+15.8%

INDIA — CASINO RULES APPLY

Remarkably, considering its shabby condition, India’s tendency to avoid reality checks continues unabated. Good retail sales figures for November hit the headlines and investors piled in, pushing the Bombay Stock Exchange BSE Sensex 30 higher by 2.1%. Every major listed bike producer except Royal Enfield parent Eicher gained ground.      

Eicher’s woes came from Indian business media reporting that Honda took a record volume of orders for its recently unveiled CB350 H’Ness model during November. The H’Ness is a direct challenger, including similar retro styling, to Royal Enfield’s new 350cc Meteor.            

Currency: rupee

Price

Week

Month

Hero MotoCorp

3108.85

+3.7%

+11%

Bajaj Auto

3173.55

+3.8%

+9.9%

TVS Motor

499.65      

+4.4%

+9.7%

Eicher Motors

2534.65

-2.2%

+21.5%

Mahindra

722.00

+0.9%

+21.5%

CHINA — BIKES ON THE BACK FOOT

For a second week on the trot, the fortunes of listed Chinese motorcycle manufacturers have been widely divurgent from overall market sentiment. Throughout this period and beyond, Shanghai’s benchmark SSE Composite index has been delivering modest but solid weekly gains — 1.1% in the past five sessions and 0.9% in the previous week. But BDN’s average of biker-share movements respectively recorded losses of 2% and 2.3%. And there has been no consistency in the aberrant winners. This week, they were Honda JV affiliate Sundiro and Yamaha partner Jianshe. A week earlier, Zongshen and Yamaha partner Linhai took the honours.                 

Currency: yuan

Price

Week

Month

Qianjiang

25.47

-4.2%

-14.4%

Zongshen

8.47

-1.3%

+1.6%

Sundiro

2.99

+3.5%

+5.3%

CETC Energy    

5.91

N/A

-1.3%

Lifan

5.23

-3.9%

-2.4%

Loncin

3.94

-2.2%

-1.7%

Linhai

6.82

-12.7%

-1%

Guangzhou Auto

13.29

-4.2%

-0.3%

CFMoto

144.53

-2.3%

-16.4%

 

Currency: HK dollar

Price

Week

Month

Jianshe

5.18

+7.2%

+9.3%