A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 26 August 2022. BDN financial editor Roger Willis reports.
USA – CONFIDENCE HAMMERED
Despite some raw nerves, bullish investor wishful thinking kept New York equities trading on the boil for a while, as the US Federal Reserve’s annual Jackson Hole summit conference of central bankers loomed. But all bets were off once Fed supremo Jay Powell stepped up to the rostrum on Thursday and emphasised his resolve to continue jacking up interests rates relentlessly until inflation had been thoroughly curbed.
On the following day, US shares plunged, with 95% of S&P 500 companies shedding value and every significant sector in the red. Economically sensitive financial and industrial tickers led this losing streak. The S&P 500 index itself finished on a weekly fall of 4%. The Dow Jones Industrial Average sank by 4.2%. S&P MidCap members copped a 3% decline.
HOGOMETER
Once again, Harley-Davidson’s share price reflected waves of collective angst. On Monday, an initially downbeat mood pushed it 2.6% lower. Then fantasists flipped direction. The price recovered by 1.5% on Tuesday, 0.3% on Wednesday and 1.3% on Thursday. But after Powell had driven his final nail into their optimistic coffin, a sharp 3.4% downwards correction ensued on Friday. The negative conclusion was almost exactly in line with that aforementioned MidCap average.
| Currency: dollar | Price | Week | Month |
| Harley-Davidson | 39.99 | -2.9% | +5.8% |
| Polaris Industries | 116.97 | -3.8% | -0.3% |
| Textron | 64.62 | -2.2% | -1.6% |
| Ideanomics (Energica) | 0.60 | -1.6% | -11.8% |
EUROPE – MORE OF THE SAME
American cues spread like a disease across all leading global stock market indices, as every one of them retreated. European investors’ run for cover was dominated by Germany, where Frankfurt’s Xetra Dax dived by 4.2%. The three Teutonic biker-related corporates we list joined this gloomy scenario.
In Italy, Milan’s FTSE MIB index deteriorated by a slightly more modest 2.8%, given typically weaker trading due to ongoing holiday absences. So Piaggio escaped with a smaller loss.
| Currency: euro | Price | Week | Month |
| BMW | 73.12 | -3.5% | -8% |
| Volkswagen | 184.80 | -4.4% | -3.9% |
| Pierer Mobility | 60.30 | -1.5% | -6.5% |
| Piaggio Group | 2.47 | -2% | -3.5% |
JAPAN – CAUGHT ON THE EDGE
US central banker revelations arrived late in the Far East, owing to time-zone difference. But they got there early enough to sour Japanese Friday afternoon trading. Following American sentiment as ever, Tokyo’s Nikkei 225 index suddenly slumped, closing 1% down on a weekly basis. However, indigenous motorcycle-related shares felt only a fraction of the pain.
| Currency: yen | Price | Week | Month |
| Honda | 3654 | -1.6% | +8.2% |
| Yamaha | 2900 | +0.3% | +13.5% |
| Suzuki | 4831 | -1% | +11.7% |
| Kawasaki | 2650 | +1% | +2% |
INDIA – HOME GROWN INFLATION ISSUES
Remorselessly rising consumer prices are beginning to trouble Indian investors too. And what’s happening in America impinges directly on the cost of borrowing by large globalised corporates across the sub-continent. Mumbai’s BSE Sensex 30 consequently went into reverse, sliding by 1.4%.
The four leading indigenous motorcycle manufacturers suffered reversals. Mahindra, basking in unprecedented demand for SUVs which its automotive plants are struggling to meet, escaped without punishment.
| Currency: rupee | Price | Week | Month |
| Hero MotoCorp | 2826.75 | -0.4% | +0.3% |
| Bajaj Auto | 4054.40 | -0.5% | +3.6% |
| TVS Motor | 954.45 | -0.4% | +5.1% |
| Eicher Motors | 3355.10 | -2% | +8.5% |
| Mahindra | 1274.65 | +2.8% | +9.5% |
CHINA – “ZERO COVID” EQUALS ZERO GROWTH
Data detailing the deleterious impact of rigorous Chinese government “Zero-Covid” lockdown policies on industrial output for export keeps on emerging, while any hint of relaxation has yet to emerge. To make matters worse, a severe drought is now hindering China’s agricultural production, ramping up food imports.
Inevitably, these economic woes are feeding into investor malaise. Latest indicator was Shanghai’s SSE Composite index and the blue-chip CSI 300 respectively dropping by 0.7% and 1% during the past week. Just over half of all listed Chinese motorcycle manufacturers fell in value.
| Currency: yuan | Price | Week | Month |
| Qianjiang | 27.15 | +11% | +27.3% |
| Zongshen | 6.66 | -2.8% | -5.7% |
| Sundiro | 2.50 | -1.2% | -1.6% |
| CETC (Jialing) | 13.50 | -4.3% | +15.3% |
| Lifan | 5.09 | -0.8% | -1.4% |
| Loncin | 4.98 | +1.4% | -3.3% |
| Linhai | 8.91 | -2.4% | +0.2% |
| Guangzhou Auto | 14.49 | +1.6% | -2.7% |
| CFMoto | 158.90 | +9.2% | +6.6% |
| Xinri E-Vehicle | 23.87 | +1% | +21.8% |
| Currency: HK dollar | Price | Week | Month |
| Jianshe | 5.58 | +3.3% | +11.6% |