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Share prices

21/12/2020

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 18 December 2020. BDN financial editor Roger Willis reports.

USA — HOT AND COLD

American and global equities in developed markets rallied for much of the week, on an upbeat news diet of Covid vaccine roll-outs, central bank stimulus pledges and ultimately forlorn hopes of reduced political confrontations in both the US and Europe. But, as the final trading Friday of 2020 on most stock exchanges worldwide approached, Wall Street’s confidence dissipated. The increasing likelihood of a no-deal Brexit outcome and Washington law-makers apparent inability to compromise on a $900bn stimulus package before Christmas were to blame.  

Nevertheless, New York indices managed to stay shiny side up on earlier advances. The blue-chip S&P 500 and Dow Jones Industrial Average respectively finished with 1.3% and 0.4% weekly gains. S&P’s MidCap 400 did best, adding 2.1%. 

Among powersports contenders, Polaris blossomed, thanks to well-informed speculation about the imminent replacement of its departing chief executive Scott Wine. MidCap member Harley-Davidson blotted its copybook, declining for a third consecutive week.               

HOG-OMETER — ANOTHER LOSING STREAK

Monday’s warning signals flashing on our Hog-ometer suggested an already fortnight-long price correction wasn’t over yet. Swerving sharply in the opposite direction to parallel positive market direction, Harley-Davidson’s shares plunged by 4.7% in just that single session. Brief respite appeared on Tuesday with a 1.9% rise. Then the sell-off resumed — down 0.8% on Wednesday, 0.7% on Thursday and a harsher 1.8% loss on Friday. 

Since Harley’s post-results peak of $41.43 on 24 November, the company has now devalued by 13.8%. And the share price has also fallen almost all the way back to its ascension into 35-buck-plus territory on 27 October, when those fanciful Q3 figures were released.                    

Currency: dollar

Price

Week

Month

Harley-Davidson

35.72

-6.1%

-3.7%

Polaris Industries

99.22

+5.7%

+8%

Textron

47.37

-0.5%

+5.7%

EUROPE — OPTIMISM, POSSIBLY FALSE 

Mixed messages on last-minute Brexit negotiations veered towards optimism for much of the week in northern Europe, dependent on who was briefing the media. Teutonic observers just couldn’t imagine that anything as trivial (to them) as fishing rights would be allowed to queer the pitch. So the Frankfurt Börse’s Xetra Dax index rallied by 3.9% over the week.     

Consequently, BMW and Volkswagen pretty much recovered their losses from the previous week. KTM parent Pierer Mobility’s share price continued its remorseless climb, after the company revised both its second half and full year 2020 revenue and earnings forecasts upwards for the second time, in an announcement made on 11 December.     

Currency: euro

Price

Week

Month

BMW

73.95

+5.3%

+0.3%

Volkswagen

164.40

+7.1%

+1.9%

Pierer Mobility

62.50

+5.9%

+16.8%

Further south, the Borsa Italiana’s MIB index in Milan rose too, but by a lesser degree of 1.3%. Powered two-wheeler shares weren’t popular, though. Both Piaggio and Energica lost ground for a second week on the trot. The Italian government cancelling Christmas and New Year observance with renewed Covid lockdowns won’t have helped.            

Currency: euro

Price

Week

Month

Piaggio Group

2.64

-0.4%

-1.5%

Energica Motor

1.82

-4.2%

+9%

JAPAN — TEAM GREEN GOES BALLISTIC 

Tokyo’s Nikkei 225 index resumed modest positivity by 0.4% after the previous week’s gloom. But performance by indigenous Japanese bike manufacturers was mixed. However, standing out above the rest, Kawasaki’s plan to spin off some of its divisions into stand-alone entities — led by the motorcycle business — has created an increasingly red-hot investment prospect. Kawasaki shares have stacked on an extraordinary 29.4% in just the past two weeks.                                                                                                                                                                                                          

Currency: yen

Price

Week

Month

Honda

3094

+1%

+3.9%

Yamaha

2151

-1.5%

+9.5%

Suzuki

5182

-3.4%

-4.8%

Kawasaki

2073

+15.6%

+30.5%

INDIA — CAUTION CREEPS IN

India’s economic woes are becoming steadily more obvious against a background of rampant Covid infections. But the Bombay Stock Exchange’s BSE Sensex 30 index just keeps on rising. Its incremental advance was lower in the past week, though, at 1.9%.      

Among motorcycle producers, domestic market leader Hero actually lost ground and weekly improvements for the rest were all behind the Sensex curve.            

Currency: rupee

Price

Week

Month

Hero MotoCorp

3135.30

-1.6%

+4.6%

Bajaj Auto

3347.55

+0.6%

+9.4%

TVS Motor

489.10      

+1%

+2.2%

Eicher Motors

2480.95

+0.4%

-4.2%

Mahindra

733.60

+0.8%

+2.5%

CHINA — FOREIGN INPUT BOOSTER

Shanghai’s SSE Composite index rose by 1.4%, regaining some of the losses from a sell-off in the previous week. The main boost came from reports of a foreign investment surge in Chinese equities. Luckily, tension-mounting news that the Trump administration had put 60 of China’s leading tech companies on a US export blacklist arrived after the Shanghai and Shenzhen exchanges had closed on Friday.      

Six of the ten listed Chinese bike manufacturers rallied, four of them by considerably more than the SSE average. Leader of the pack by a huge margin was CETC, although such good fortune was more to do with its booming e-bicycle business than the Honda-based Jialing motorcycles for which the company was formerly best-known, and still makes.                   

Currency: yuan

Price

Week

Month

Qianjiang

28.22

+10.1%

+2%

Zongshen

7.67

-2.3%

-10.4%

Sundiro

2.64

-10.2%

-12%

CETC Energy    

7.55

+27.7%

+23.6%

Lifan

5.08

-2.7%

-10.6%

Loncin

3.58

+0.3%

-12.3%

Linhai

6.32

-0.8%

-13.2%

Guangzhou Auto

14.27

+8.8%

-0.1%

CFMoto

169.79

+9.2%

+8.3%

 

Currency: HK dollar

Price

Week

Month

Jianshe

4.98

+0.8%

-1.8%