Register / Sign in

Share prices

18/06/2018

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 15 June 2018. BDN financial editor Roger Willis reports.

Unsurprisingly, the world’s worst performer among major stock markets over the past week was Chinese, as Shanghai’s SSE Composite index dropped by 1.2%. The reason was obvious. President Trump’s threat of $50bn in initial punitive tariffs on goods from China had finally become hard reality, firing a first salvo in all-out protectionist trade warfare between the two nations. The Chinese government promptly announced imminent retaliation in equal measure.

The impact on listed Chinese motorcycle manufactuers varied, presumably depending on investor calculations as to their degree of exposure to further US sanctions. CF Moto was hardest hit, plunging by 13.2%. Honda JV affiliates Sundiro and Wuyang parent Guangzhou Auto were next in line, respectively 8.5% and 7.4% down. Qianjiang lost 5%. Zongshen, Loncin, Lifan and Jianshe suffered more minor punishment. But Linhai boasted a trend-bucking 5.4% rise and Jialing added 0.8%.

In America, share prices followed an upward curve for the first few days, signifying approval of the US Federal Reserve’s decision to raise its base rate by 0.25%. However, the tariff fear factor eventually got a grip and most gains were wiped out by close of play on Friday. The S&P 500 index finished dead flat while the Dow Jones Industrial Average fell by 0.8%.

Amazingly, none of this touched homespun bike business because a different and distinctly upbeat agenda had surfaced. An off-the-cuff remark from Tesla electric car supremo Elon Musk at his annual shareholder meeting during the previous week was responsible. Musk had assured this audience that Tesla harboured no intention of moving into electric motorcycles and analysts subsequently interpreted these words as a generous green light for Harley-Davidson’s forthcoming e-cruiser deployment. In response, gullible speculators piled into Harley stock, pushing the price 7.7% up — blithely ignoring the 25% EU tit-for-tat tariff spanking currently aimed at its range. To some extent, Polaris went along for the ride with a 3.7% increase.

European sentiment also followed central banking initiatives, after the ECB indicated an end to post-crisis quantitative easing was almost nigh, boosting indices across the continent. The pan-eurozone Eurofirst 300 closed 1.1% higher. Frankfurt’s Xetra DAX put on 1.5% and the MIB in Italy rose by 1.9%. Positivity wasn’t universal, though, and tariff tensions weighed against automotive stocks later in the week. KTM and Volkswagen suffered respective 2.9% and 1.5% declines. BMW managed a weedy 0.3% rise. Piaggio wriggled about and then retreated to finish exactly flat. Topicality for sparkiness, courtesy of that mercurial Musk fella, may have helped Energica to improve by 1.4%.

Anticipation of Eid al-Fitr celebrations, when Muslims celebrate the end of their Ramadan fasting period, spread torpor across most Asian emerging markets. Indonesia’s Jakarta exchange was shuttered all week. The Karachi bourse in Pakistan opened to allow four days of desultory trading before locking its doors when Eid officially kicked off there on Friday.

Technically, Indian stockbrokers were supposed to do a full working week, given the Mumbai market (still monikered the Bombay Stock Exchange honouring its British Raj heritage) was open for business over a full five days. This was due to cloudy skies obstructing the head imam from carrying out necessary lunar observations to detect the date of Eid, so the party was postponed until Saturday.

Clearly, India’s 189 million Muslims had other ideas, because there really wasn’t much trading action. The BSE Sensex therefore totally flatlined — as did most leading motorcycle industry shares. TVS matched the index by not moving at all. Eicher struggled to rise by just 0.2%. Bajaj wasn’t even that good, a mere 0.1% up. Mahindra sank by 0.2%. Hero MotoCorp stock stood out by posting a 1.6% gain.                 

Price (P) Daily change (C) 52-week range (R) One-year investment return (Y)  

USA (US dollar)

Harley-Davidson    P 45.94  C +3.94%  R 56.95 - 39.34  Y -14.56%
Polaris    P 130.63  C +1.03%  R 137.66 - 85.82  Y +53.96%
Textron    P 67.41  C -0.12%  R 69.36 - 45.00  Y +42.29%
US Highland    P 0.0024  C N/A  R 0.0107 - 0.0006  Y N/A
Curtiss    P 038  C N/A  R 1.50 - 0.06  Y N/A

Notes: Polaris makes Indian bikes, ATVs, snowmobiles, quadricycles and EVs. Textron produces own-brand ATVs. US Highland makes off-road bikes. Curtiss Motorcycles, formerly Confederate Motors, makes limited-edition cruisers.

CANADA (Canadian dollar)

BRP    P 62.92  C +1.06%  R 63.58 - 37.06  Y +63.18%

Notes: Bombardier Recreational Products makes Can-Am ATVs and Spyder road trikes, Ski-Doo snowmobiles, Sea-Doo PWC and Rotax proprietary engines.

TAIWAN (Taiwanese dollar)

Sanyang    P 21.40  C -0.93%  R 23.65 - 20.00  Y +3.65%

Notes: Sanyang Motor (SYM) is the leading Taiwanese bike manufacturer.

VIETNAM (Hong Kong dollar)

VMEPH    0.46  C +3.41%  R 0.48 - 0.40  Y -5.21%

Notes: Vietnam Manufacturing & Export Processing Holdings, a JV partner of SYM, is the third-largest Vietnamese bike manufacturer.

INDONESIA (rupiah)

Astra    P 6900  C -1.08%  R 9025 - 6525  Y -20.54%
Indomobil    P 4160  C +2.46%  R 4360 - 815  Y +263.33.%

Notes: Astra International is a Honda JV partner. Its controlling shareholder is British conglomerate Jardine Matheson. Indomobil Sukses Internasional is a Suzuki JV partner.

EUROPE (euro)

BMW    P 85.90  C -0.19%  R 97.50 - 77.07  Y +7.66%
VW    P 158.60  C -2.76%  R 191.80 - 127.50  Y +19.87%
KTM    P 61.20  C +0.66%  R 70.00 - 46.61  Y +29.91%
Piaggio    P 2.06  C -0.77%  R 2.86 - 1.93  Y +9.29%
Energica    P 2.97  C +0.68%  R 3.39 - 2.71  Y -6.6%

Notes:  Volkswagen Group owns Ducati. Energica Motor is an Italian manufacturer of electric superbikes

PAKISTAN (Pakistani rupee)

Atlas Honda    P 556.00  C -4.14%  R 640.00 - 470.00  Y -7.33%
Pak Suzuki    P 433.01  C -0.88%  R 820.00 - 424.00  Y -46.21%

Notes: Atlas Honda and Pak Suzuki are JV assembly partners.

INDIA (rupee)

Hero    P 3693.70  C -0.05%  R 4200.00 - 3353.75  Y +0.11%
Bajaj    P 2877.15  C -0.47%  R 3472.60 - 2694.50  Y +4.29%
TVS    P 582.90  C -0.22%  R 794.90 - 524.50  Y +8.36%  
Eicher    P 29,573.75  C +0.13%  R 33,483.95 - 26,000.00  Y +3.13%
Mahindra    P 909.45  C -1.37%  R 933.50 - 612.00  Y +32.32%  
Maharashtra    P 2797.50  C -0.03%  R 3450.00 - 1831.10  Y +47.35%
Scooters India    P 46.00  C -0.86%  R 79.70 - 37.05  Y -16.21%

Notes: Hero MotoCorp is a former Honda JV partner. Bajaj has a major shareholding in KTM and ties with it and Kawasaki. TVS is a former Suzuki JV partner and BMW Motorrad contractor. Eicher makes the Royal Enfield brand. Mahindra & Mahindra has an own-brand bike range, a majority stake in French scooter brand Peugeot and owns formerly British BSA and Czech Jawa brand rights. Maharashtra Scooters assembles CKD scooter kits manufactured by Bajaj. Scooters India makes Vikram three-wheeled taxis and light trucks.

JAPAN (yen)

Honda    P 3533  C -0.31%  R 4151 - 3000  Y +18.93%
Yamaha    P 3020  C N/A  R 3935 - 2744  Y +9.83%
Suzuki    P 6428  C +1.09%  R 6811 - 5100  Y +24.79%
Kawasaki    P 3415  C +0.29%  R 4620 - 3150  Y +9.57%

CHINA (yuan)

Qianjiang    P 13.85  C -2.6%  R 23.99 - 13.76  Y -11.68%
Zongshen    P 5.16  C -1.53%  R 7.82 - 5.09  Y -30.55%   
Sundiro    P 4.72  C -3.28%  R 8.47 - 4.36  Y -41.56%
Jialing    P 4.95  C -2.17%  R 6.83 - 4.42  Y -20.80%
Lifan    P 5.66  C -1.74%  R 9.44 - 5.58  Y -29.86%
Loncin    P 5.62  C -3.1%  R 8.62 - 5.55  Y -16.3%
Linhai    P 9.17  C N/A  R 14.46 - 6.90  Y -30.26%
GAG    P 12.71  C -3.49%  R 21.44 - 12.14  Y -34.31%
CFMoto    P 22.19  C -4.39%  R 50.92 - 19.63  Y N/A

CHINA (Hong Kong dollar)

Jianshe    P 6.12  C -1.45%  R 11.65 - 6.05  Y -29.17%

Notes: Qianjiang owns Keeway and Benelli. Zongshen makes own-brand bikes and proprietary engines, and has JV partnerships with Piaggio, (scooters), and Harley-Davidson (parts). Sundiro is a Honda JV partner. Jialing makes own-brand bikes using Honda licensed technology. Lifan makes own-brand bikes and distributes MV Agusta in China. Loncin is a Kawasaki JV partner and OEM engine contractor to BMW Motorrad. Linhai and Jianshe are Yamaha JV partners. Guangzhou Automobile Group (GAG) is the parent of Honda JV partner and own-brand bike manufacturer Wuyang. CFMoto makes bikes and ATVs, exporting to the UK under the WK Bikes brand.

MALAYSIA (ringgit)

Oriental Holdings    P 6.54  C N/A  R 6.83 - 6.06  Y +0.95%
Hong Leong    P 11.46  C +0.88%  R 12.30 - 9.00  Y +20.95%

Notes: Oriental Holdings is a Honda JV partner. Hong Leong Industries is a Yamaha JV partner.

SOUTH KOREA (won)

KR    P 747  C N/A  R 1672.5 - 475.5  Y -45.21%
Daelim    P 80,700  C +0.75%  R 94,400 - 70,000  Y -8.4%

Notes: KR Motors makes Hyosung bikes and ATVs. Daelim Industrial retains a controlling 59% stake in Daelim Motor, the largest bike manufacturer in Korea. (The remainder is British, owned by Standard Chartered Bank.)