A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 6 May 2022. BDN financial editor Roger Willis reports.
USA — FED TAKES THE FLAK
US Federal Reserve central banking hubris dominated the week, swerving erratically from hero to zero. Momentum began to mount early, pushing New York market indices steadily higher, until the Fed announced a base interest rate increase of 0.5% on Wednesday — its first major counter-inflationary move. Markets rallied mightily in response.
But applause for the Fed’s action rapidly petered out on Thursday. Investors decided the rate rise lacked sufficient aggression on a “too little, too late” basis and ran for cover, initiating a vicious reversal. Even an upbeat US jobs growth report for April, released on Friday, failed to fully interrupt the pace of this sell-off.
Previously substantial indices gains were entirely wiped out. The blue-chip S&P 500 and Dow Jones Industrial Average both closed negative by 0.2%. S&P’s MidCap 400 fell further, finishing 0.8% down.
HOGOMETER
Harley-Davidson was a typical victim of the Fed’s psycho roller-coaster ride. Up a modest 0.6% on Monday, it then went ballistic with surges of 5.7% on Tuesday and 6% on Wednesday. By that evening, the company’s value had increased by 12.6% since the previous Friday’s close, as its shares peaked at $41.06. But on Thursday they plunged by a woeful 9%, partially ameliorated by 2.6% recovery on Friday.
| Currency: dollar | Price | Week | Month |
| Harley-Davidson | 38.35 | +5.2% | +1.2% |
| Polaris Industries | 104.78 | +10.4% | +0.2% |
| Textron | 68.54 | -1% | +0.4% |
| Ideanomics (Energica) | 0.64 | -11.1% | -31.2% |
EUROPE — FLOUNDERING ON
The European Central Bank is still mincing around, as far as its own anti-inflation measures go. A eurozone interest rate rise is currently seen as unlikely before July and may be delayed for longer. Such reluctance to grasp the nettle inevitably undermined stock market confidence even further.
The Xetra Dax equities index in Frankfurt, a key yardstick of German industrial well-being, sank by 3%. Italy’s FTSE MIB in Milan turned in a fractionally worse performance, 3.2% down. Q1 corporate results from the pair of Teutonic automotive giants with motorcycling interests, released in the past week, featured profitability declines driven by rising input costs and supply-chain malfunctions. Despite record results from its Ducati and Bentley niche subsidiaries, Volkswagen shares took the biggest German kicking. Italian flag carrier Piaggio, which had bucked the overall Q1 negative trend with aplomb, was hit even harder.
Sentiment was also assailed by failed attempts from the EU’s Brussels bureaucracy to impose an embargo on tainted Russian oil. Notable back-sliders were Germany and Hungary. Meanwhile, the war in Ukraine continues to escalate, with new deliveries of heavy weaponry being deployed on both sides. Ukrainian soldiers celebrated by knocking the turret off, and killing the occupants, of a supposedly indestructable Russian T-90 supertank.
| Currency: euro | Price | Week | Month |
| BMW | 79.06 | +0.7% | +2.6% |
| Volkswagen | 200.80 | -4% | -7.5% |
| Pierer Mobility | 75.50 | -4.8% | -6.2% |
| Piaggio Group | 2.26 | -5.4% | -7.4% |
JAPAN — DOUBLE GEISHAS ALL ROUND
The Japanese also had something to celebrate. Tokyo’s Nikkei 225 was the only front-ranking share index worldwide to achieve a positive outcome during the past week — adding a modest 0.6%. The value of all four indigenous motorcycle producers, on the cusp of announcing either Q1 or full-year financial results, rose by larger degrees.
| Currency: yen | Price | Week | Month |
| Honda | 3470 | +1.5% | +8% |
| Yamaha | 2785 | +3.5% | +9.2% |
| Suzuki | 3999 | +2.3% | +3% |
| Kawasaki | 2398 | +3.9% | +12.9% |
INDIA — TOO HOT TO TROT
India has been afflicted by a deadly heat-wave, killing long thousands of vulnerable people and causing power outages all over the country, as electricity demand soared to keep air-con units operational. The government pulled every string possible, ramping up round-the-clock coal mining to feed hungry power stations.
Mass factory lay-offs, with workers either sent home owing to the weather or lack of electricity to maintain production, quickly resulted in significant economic disruption. A stock market sell-off in Mumbai ensued, wiping 3.9% off the BSE Sensex 30 index. Among motorcycle manufacturers, only market leader Hero MotoCorp avoided share price losses.
| Currency: rupee | Price | Week | Month |
| Hero MotoCorp | 2563.35 | +2.3% | +8.5% |
| Bajaj Auto | 3499.75 | -6.2% | -8.2% |
| TVS Motor | 629.05 | -3.9% | -3.7% |
| Eicher Motors | 2362.45 | -10.2% | -7.5% |
| Mahindra | 893.85 | -3.1% | +4.3% |
CHINA — BROKEN?
Chinese president Xi Jinping has absolutely refused to moderate or abandon his zero-Covid extreme lockdown policy, even in the face of growing civil unrest and risk of economic meltdown. So investment confidence is rapidly withering. This week, Shanghai’s SSE Composite index dropped by 1.5% and the blue-chip CSI 300 covering both the Shanghai and Shenzhen exchanges took a harsher knock of 2.7%.
However, geographical location seems to have a bearing on biker shares. Those companies still operational outside locked-down areas are benefiting. Seven of China’s eleven listed motorcycle manufacturers made gains.
| Currency: yuan | Price | Week | Month |
| Qianjiang | 10.28 | +3.6% | -11% |
| Zongshen | 5.51 | +1.8% | -10% |
| Sundiro | 2.07 | +2.5% | -1.4% |
| CETC (Jialing) | 9.08 | -1.4% | -24.3% |
| Lifan | 3.86 | -1.8% | -9.8% |
| Loncin | 4.25 | +1% | -0.2% |
| Linhai | 7.23 | N/A | -20.6% |
| Guangzhou Auto | 12.29 | +0.4% | +3.9% |
| CFMoto | 126.49 | +8.3% | +24.3% |
| Xinri E-Vehicle | 12.24 | +9.6% | -6.9% |
| Currency: HK dollar | Price | Week | Month |
| Jianshe | 4.89 | -2% | -7.2% |