A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 5 August 2022. BDN financial editor Roger Willis reports.
USA — MIND GAMES
A fretful week for investors in New York saw them subject to conflicting messages. Payroll data showing a surge in active US employment during July, twice the size of analyst estimates, was at first well-received. Then consensus opinion decided it was an indicator of the labour market over-heating, and likely to drive wages, and therefore consumer price inflation, even higher. So Federal Reserve central bankers would respond by pushing their base interest rate up at a faster pace — increasing the chance of recession.
Such revelations put a proverbial cat among the pigeons, confidence shrivelled and market indices ditched any chance of repeating handsome gains over the previous five sessions. Wall Street’s blue-chip S&P 500 finished marginally positive by 0.4%. The Dow Jones Industrial Average and S&P’s MidCap 400 were marginally negative, respectively closing 0.1% and 0.3% in arrears.
HOGOMETER
Basking in popular half-year results didn’t last long for Harley-Davidson. Monday’s price promptly slid by 0.3%, and a firmer 2.7% retreat followed on Tuesday. Harley shares then rallied on Wednesday, as traders debated the US Federal Reserve’s next move, recovering by 2.4%. But Thursday’s subsequent 1.2% fall and only a gestural 0.4% gain on Friday ensured the eventual weekly 1.4% loss-making conclusion.
| Currency: dollar | Price | Week | Month |
| Harley-Davidson | 37.27 | -1.4% | +14.9% |
| Polaris Industries | 115.08 | -1.9% | +2.7% |
| Textron | 64.40 | -1.9% | +5.5% |
| Ideanomics (Energica) | 0.71 | +4.4% | -2.7% |
EUROPE — SUMMER HAZE
Frankfurt’s Xetra Dax index stayed modestly positive by 0.7%. But BMW half-year results, released during the week, were frank about the deleterious impact of global economic and supply-chain woes on its profitability from bother motorcycles and saloon cars during the rest of this year. No surprise, then, that the company’s share price sank. KTM parent Pierer was on the back foot too.
The FTSE MIB index in Italy delivered another apparently stellar performance, rising by 6.4%. But market activity was minimal with desultory trading, as Milan’s financial centre was virtually deserted. Most Italian investors spend August on the beach.
| Currency: euro | Price | Week | Month |
| BMW | 76.61 | -3.6% | +0.7% |
| Volkswagen | 193.40 | +0.6% | +2.5% |
| Pierer Mobility | 62.50 | -3.1% | -0.2% |
| Piaggio Group | 2.52 | -1.6% | +8.6% |
JAPAN — WAITING ROOM
Japan’s Nikkei 225 index returned to positivity, adding 0.9%. But Honda, Yamaha and Suzuki hovered on or below the market average, as investors waited for their quarterly corporate results statements — which were released after the Tokyo stock exchange closed for business on Friday afternoon. Kawasaki is set to do the same on the following Friday. All of them are expected to reveal below-forecast profits.
| Currency: yen | Price | Week | Month |
| Honda | 3371 | -0.2% | +3.7% |
| Yamaha | 2577 | +0.9% | +2.9% |
| Suzuki | 4321 | -0.1% | +1.9% |
| Kawasaki | 2645 | +1.8% | +6.2% |
INDIA — BACKING WINNERS
Mumbai’s BSE Sensex 30 stock index kept on climbing, up 1.4%. But investor interest was very much linked to evidence of consumer demand in specific sectors. Among indigenous motorcycle manufacturers, Bajaj, TVS and Mahindra revealed enticing sales growth during July in the past week and their share prices benefited accordingly. Market leader Hero had increased retail prices right across its range at the beginning of July, suffering a subsequent slight sales decline. Stock-pickers clearly weren’t amused.
| Currency: rupee | Price | Week | Month |
| Hero MotoCorp | 2770.70 | -1.7% | -2.8% |
| Bajaj Auto | 4013.10 | +2.5% | +4.9% |
| TVS Motor | 948.35 | +4.4% | +13% |
| Eicher Motors | 3089.60 | -0.1% | +5.4% |
| Mahindra | 1235.90 | +6.1% | +9% |
CHINA — TWO FACES
A tub-thumping visit by leading US politician Nancy Pelosi to Taiwan so enraged the Chinese government that it launched live-fire missile exercises dangerously close to Taiwanese shores and rehearsed a full-scale naval blockade of the island.
But it was business as usual on China’s mainland. The SSE Composite all-share index in Shanghai fell by just 0.8% and the blue-chip CSI 300 finished with an even smaller decline of 0.3%. Four of the eleven bike producers listed on either Shanghai or Shenzhen stock exchanges increased in value. The rest went in an opposite direction. But none of those suffered grievous losses.
Taiwan’s stock exchange in Taipei was equally phlegmatic. Over a week when Chinese jet fighters were screaming through local airspace, its TWSE stock index was actually 0.4% up. Shares in the only listed Taiwanese motorcycle manufacturer, SYM, fell by 1.2%.
| Currency: yuan | Price | Week | Month |
| Qianjiang | 19.78 | -7.2% | +21.3% |
| Zongshen | 6.65 | -5.8% | +11.2% |
| Sundiro | 2.36 | -7.1% | +0.9% |
| CETC (Jialing) | 12.88 | +10% | +17.8% |
| Lifan | 4.96 | -3.9% | -7.3% |
| Loncin | 4.80 | -6.8% | +4.1% |
| Linhai | 8.65 | -2.7% | +5.6% |
| Guangzhou Auto | 15.17 | +1.9% | -9% |
| CFMoto | 152.50 | +2.3% | +22.5% |
| Xinri E-Vehicle | 18.37 | -6.2% | +23% |
| Currency:Â HK dollar | Price | Week | Month |
| Jianshe | 5.38 | +7.6% | +0.2% |