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Share prices

14/12/2020

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

USA — BAH HUMBUG!

American confidence crumbled progressively through the week. Indices began by hitting intra-day highs but soon faded thanks to a welter of bad news. A record number of fresh coronavirus cases in the US had led to a surge in factory shutdowns, accelerating first-time weekly unemployment benefit claims back up towards the million mark. Political infighting in Europe over the Brexit deal further destabilised Wall Street’s distinct lack of festive cheer. 

All of New York’s key indices finished negative. The blue-chip S&P 500 fell by 1%, with the Dow Jones Industrial Average 0.6% down. S&P’s MidCap 400 lost less, just 0.2% lower. 

Among the three powersports contenders, Textron was pretty much in line with market sentiment. But both Harley-Davidson and Polaris took considerably firmer spankings.               

HOG-OMETER — NO MINCE PIES AGAIN

While the overall US investment mood was actually improving on Monday, our Hog-ometer went the other way, wiping 0.7% off Harley’s value. But upticks of 0.1% on Tuesday and then 1% on Wednesday lifted the share price 17 cents above the previous week’s $39.60 close. That was as good as it got. Thursday delivered a 1.6% retreat to $39.12, followed by a 2.7% plunge into the bottom end of 38-buck territory on Friday — more than a dollar missing in this single session. 

So, after nine weeks of continuous growth, Harley-Davidson has now slid backwards by 6.9% over the past fortnight. Investors obviously failed to find any solace in the parallel announcement of a 19 January roll-out date for Harley’s supposedly game-changing Pan America adventure bike.                       

Currency: dollar

Price

Week

Month

Harley-Davidson

38.06

-3.9%

+8.4%

Polaris Industries

93.86

-3.2%

+0.7%

Textron

47.63

-0.4%

+9.4%

EUROPE — BREXIT BLAME GAME 

Apart from ongoing Covid-19 grief, the UK’s Brexit negotiation meltdown weighed heavily on European equities and Frankfurt’s Xetra Dax market index sank by 1.4%.     

BMW, which has three UK factories facing supply-chain disruption as well as tariff barriers, suffered the biggest reversal among biker-related stocks. Volkswagen copped a third consecutive weekly loss. Xmas joy was the sole prerogative of KTM parent Pierer, entirely bucking this trend with a sixth week of share-price growth — this time by a substantial amount.     

Currency: euro

Price

Week

Month

BMW

70.23

-6.2%

-0.6%

Volkswagen

153.50

-4.2%

-3.2%

Pierer Mobility

59.00

+7.3%

+12.4%

Down by 2.1%, the Borsa Italiana’s MIB index in Milan exaggerated German concerns. Energica’s previous two weeks of recovery flipped to a loss. Piaggio, which had flatlined for a fortnight, also turned negative.           

Currency: euro

Price

Week

Month

Piaggio Group

2.65

-1.1%

+3.5%

Energica Motor

1.90

-4%

+11.8%

JAPAN — SHARED MISERY 

Mindful of American gloom and beset by its own resurgent Covid-19 problems, Japan fell back from two weeks of positivity. Tokyo’s Nikkei 225 index declined by 0.4%. Three of the four indigenous Japanese bike manufacturers were in greater arrears. Kawasaki Heavy Industries, on the other hand, attracted growing enthusiasm for a decision to hive off several key divisions as more vigorously managed stand-alone enterprises. Its large but currently loss-making motorcycle operations were on the top of this list.                                                                                                                                                                                                          

Currency: yen

Price

Week

Month

Honda

3064

-2.1%

+5.1%

Yamaha

2184

-1.9%

+13.2%

Suzuki

5366

-4.2%

+3.7%

Kawasaki

1793

+11.9%

+16.4%

INDIA — CASINO CAPITALISM RULES

India’s Bombay Stock Exchange starred as the only major equities purveyor worldwide to add value during the past week, its BSE Sensex 30 index climbing yet again, this time by 2.3%. However, biker shares weren’t really invited to the party.      

Domestic motorcycle market leader Hero and biggest exporter Bajaj narrowly managed to stay shiny side up but all the others sank..            

Currency: rupee

Price

Week

Month

Hero MotoCorp

3185.30

+0.2%

+1.8%

Bajaj Auto

3327.65

+0.5%

+9.4%

TVS Motor

484.20      

-2.8%

+1.3%

Eicher Motors

2470.80

-3.2%

-1.7%

Mahindra

727.55

-3.1%

+15.5%

CHINA — NO BETS ON DEBTS

The Chinese government has just launched an aggressive attack on dodgy corporate debt, after a rising number of high-profile defaults. This tightening of nationalised bank purse strings threatens the soft loans upon which many of China’s more profligate and often partially state-owned industrial enterprises depend. Unsurprisingly, investors are now running for cover.      

In response, Shanghai’s SSE Composite index dropped sharply by 2.8%. BDN’s index of the ten listed Chinese motorcycle manufacturers was slightly worse, averaging 3.1% down. The only significant trend-bucker was CFMoto, which has just unveiled an 800cc adventure model based on KTM technology, destined for both domestic and export markets. Presumably it’s not brutally buried in borrowings.                 

Currency: yuan

Price

Week

Month

Qianjiang

25.63

+0.6%

-11%

Zongshen

7.85

-7.3%

-2.8%

Sundiro

2.94

-1.7%

-3%

CETC Energy    

5.91

N/A

-3.4%

Lifan

5.22

-0.2%

-1.1%

Loncin

3.57

-9.4%

-10.5%

Linhai

6.37

-6.6%

-8.7%

Guangzhou Auto

13.11

-1.4%

+4.5%

CFMoto

155.53

+7.6%

-7.2%

 

Currency: HK dollar

Price

Week

Month

Jianshe

4.94

-4.6%

+13%