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Share prices

04/01/2021

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 1 January 2021. BDN financial editor Roger Willis reports.

USA — JUST FADE AWAY

As the year 2020 staggered towards oblivion, activity was only feverish in hospital wards worldwide, treating patients suffering from the ubiquitous coronavirus. Equity markets generally went out with a whimper rather than any extravagant bang, owing to desperately slim trading volumes.  

Nevertheless, in New York, Wall Street’s four-day business week through to the afternoon of 31 December saw a return to firm positivity for the blue-chip S&P 500 and Dow Jones Industrial Average indices, with respective gains of 1.4% and 1.3%. The key mood lift was provided by President Trump reluctantly signing a $900bn economic stimulus package into law following much prevarication. S&P’s MidCap 400 didn’t fare so well, losing 0.4% as appetites for riskier investments were tempered.  

Leading US biker stocks were judged on that pessimism metric, as both Harley-Davidson and Polaris retreated in value. The latter’s punishment was most severe, for failing to recruit a fresh star supremo before veteran chairman and chief executive Scott Wine departed for pastures new at the year-end. Instead, temporary shoe-ins from among existing Polaris board members stepped up to the plate, covering both roles.               

HOGOMETER — ANNUAL VERDICT

Having bounced back a bit in the abbreviated four-session run up to Xmas, from its previous series of three consecutive weekly losses, our Hogometer hovered indecisively when NYSE brokers returned to work on Monday 28 December. Harley-Davidson’s share price dropped by just a single cent. But that was compounded by a 1.7% decline on Tuesday. Then Wednesday boasted 1.5% recovery, before the final closing bell of 2020 tolled on Thursday’s 0.8% loss. So the sum total of Harley endeavour during the past year, most of it under the guidance of new whizzkid chief executive Jochen Zeitz, amounted to sweet FA — its share value 2.8% lower than the 2019 exit price of $37.76.    

Currency: dollar

Price

Week

Month

Harley-Davidson

36.70

-1.1%

-7.7%

Polaris Industries

95.28

-3.5%

-1.8%

Textron

48.33

+0.5%

+1.1%

EUROPE — CALM BEFORE THE STORM? 

Three-day trading weeks were once again in order across European markets. And, surprisingly, the last-minute conclusion of an EU-UK Brexit deal didn’t deliver the profitable sigh of relief many commentators anticipated. Frankfurt’s Xetra Dax index rose by a relatively tentative 1%. Nerves were jangling on the basis that much of what has been agreed, on maintaining a level playing-field regulations-wise, isn’t worth the paper it’s written on and will unravel quite rapidly.

In Teutonic Northern Europe, BMW slid for a second week, reaping no benefit from apparent tariff-free Brexit resolution. And while Volkswagen managed a third consecutive week of positivity, its latest advance was marginal. 

KTM parent Pierer Mobility, on the other hand, was in an aberrant bubble of bonhomie. Austria’s finest stacked on solid growth for the ninth week in a row. And although it had taken a harsh (if fairly short-lived) dive in March 2020, Pierer’s share capitalisation has risen by a third over the year as a whole.      

Currency: euro

Price

Week

Month

BMW

72.23

-1.6%

-3.5%

Volkswagen

170.10

+0.2%

+6.2%

Pierer Mobility

66.00

+3.1%

+20%

The Borsa Italiana’s MIB index in Milan struggled to catch Frankfurt, only 0.5% up by close of play on 30 December. But, again, there was very little trading volume in what was an ongoing holiday period combined with renewed Covid lockdown conditions. Piaggio’s static value, week-on-week, was typical of this subdued mood.            

Currency: euro

Price

Week

Month

Piaggio Group

2.70

N/A

+0.7%

Energica Motor

1.85

+1.1%

-6.6%

JAPAN — KAWASAKI ASCENSION CONTINUES 

After having studiously ignored Christmas with a full five days of exchange activity in the previous week, Tokyo flipped to just three sessions, even though New Year’s Eve wasn’t actually a public holiday. The Japanese also swapped negativity for an aggressive burst of optimism, as evidenced by an impressive 3% gain for the Nikkei 225 index.                           

But Honda, Yamaha and Suzuki weren’t invited to the party. All three retreated in unison for a second week. And Suzuki shares have now been falling for five weeks without interruption.            

Kawasaki blithely added yet more value, though. Team Green’s market capitalisation has now grown by an incredible 87.4% over nine weeks, since sinking to an annual low point on 30 October when its lamentable half-yearly results were announced. Investors are obviously ecstatic about the subsequent corporate upheaval and recovery plan. However, they should note that Kawasaki’s share price entering 2021 is still 3.5% down against the beginning of 2020.            

Currency: yen

Price

Week

Month

Honda

2877.5

-1.9%

-8.1%

Yamaha

2104

-1.3%

-5.5%

Suzuki

4782

-1.6%

-14.6%

Kawasaki

2324

+7.9%

+45%

INDIA — CRISIS MISMANAGEMENT

Indian equity trading stretched over the full week, a unique occurrence among major markets worldwide. Mumbai’s BSE Sensex 30 index climbed by 1.7% and all five leading indigenous motorcycle manufacturers made reasonable advances.      

However, this prospering biker vision is unlikely to last as the country plunges into the most serious political crisis Narendra Modi’s Hindu nationalist government has ever faced. Poorly-drafted agricultural competition reforms have infuriated his usually loyal rural voter base. Many thousands of outraged farmers are now invading the streets of India’s capital New Delhi in protest. After cashing in late-season crops, these farmers are usually the biggest buyers of motorcycles in the early New Year. Bike producers are therefore bricking themselves…             

Currency: rupee

Price

Week

Month

Hero MotoCorp

3110.00

+1.2%

N/A

Bajaj Auto

3444.05

+2.1%

+8.5%

TVS Motor

485.00      

+1.1%

-2.9%

Eicher Motors

2530.90

+3.9%

-0.1%

Mahindra

720.60

+1.4%

-0.2%

CHINA — NEW YEAR FEARS

Having more-or-less flatlined through a Christmas period uncelebrated by the Chinese, Shanghai’s SSE Composite index perked up with a 2.2% increase to greet the New Year. But volatility was also growing in spades.      

Six of the ten listed Chinese bike manufacturers declined again, but not the same ones as during the previous week. Honda JV affiliate Sundiro more than recovered from an 11% plunge five sessions earlier. Jialing parent CETC Energy went in the opposite direction, swapped its 27.8% great leap forward last week for a double-digit percentage plunge this time around. Such wild swings are hardly promising, given US President-Elect Joe Biden’s approaching investiture. His stance on trade relations with China remains entirely opaque.                   

Currency: yuan

Price

Week

Month

Qianjiang

25.59

-8.6%

+0.5%

Zongshen

7.71

+0.1%

-9%

Sundiro

2.65

+12.8%

-11.4%

CETC Energy    

8.61

-10.8%

+45.7%

Lifan

4.73

-8.3%

-9.6%

Loncin

3.50

+1.2%

-11.2%

Linhai

6.15

-0.3%

-9.8%

Guangzhou Auto

13.29

+0.1%

N/A

CFMoto

174.19

-1.5%

+20.5%

 

Currency: HK dollar

Price

Week

Month

Jianshe

4.81

-0.8%

-7.1%