SHARE PRICES AND MARKET ANALYSIS

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 7 October 2022. BDN financial editor Roger Willis reports.

USA — BRIEF RESPITE

Weaker than expected US manufacturing data prompted investors to bet on the Federal Reserve central bank slowing the pace at which it lifts interest rates. So American equities traders swung into an upbeat mood. Realising that serial losses over the past three quarters have created bargain share prices, they began “buying the dip” with enthusiasm for the first couple of days after markets entered Q4.

However, the initial strength of this rally didn’t last, petering out on Wednesday into a gradual decline for the rest of the week. Despite that reversal, market indices still closed on gains. The blue-chip S&P 500 and Dow Jones Industrial Average respectively rose by 1.5% and 2%. S&P’s MidCap 400 added 2.9% and the NASDAQ Composite finished a somewhat more feeble 0.7% higher.

HOGOMETER

Harley-Davidson shares closely tracked the MidCap index, soaring by 3.5% and then 5.2% on Monday and Tuesday. Respective losses of 2.6%, 2.4% and 0.8% followed on Wednesday, Thursday and Friday.

Harley’s sparky spin-off LiveWire turned in a more extreme performance in only its second week listed on the NYSE. On Monday, the LVWR ticker easily recovered substantial first-week losses, surging by 29.5%, plus another 3.6% on Tuesday, before sliding backwards by smaller increments through to Friday. The closing result looked tremendous. But applause should be muted, given the price was only 0.3% up from the debut pre-launch valuation of $9.42 on 26 September.

EUROPE — GRATEFUL FOR SMALL MERCIES

Some of the early-doors US mood swing rubbed off on European investors, although climbing bond yields associated to Europe’s looming energy crisis soured benefits as the week progressed. All the same, key stock indices in the eurozone’s biggest industrial nations finished positive. Frankfurt’s Xetra Dax made a 1.3% advance and the FTSE MIB in Milan was 1.2% up. Motorcycle-related shares all achieved gains.

JAPAN — GENTLEMEN, START YOUR ENGINES

Tokyo’s Nikkei 225 stock index rebounded mightily, recouping all of its previous weekly retreat with a 4.5% increase, as corporate Japan focused on the quarterly financial reporting season advent. Motorcycle and automotive shares suddenly became popular purchases again, on the back of optimistic analyst profit estimates.

INDIA — WINNERS OR LOSERS?

India’s investor sentiment is still weak, in the face of stumbling overall consumer confidence — as evidenced by a marginal 0.2% weekly improvement for Mumbai’s BSE Sensex 30 stock index. But a welcome flurry of positive September sales figures from leading motorcycle manufacturers revived most biker stocks. The oddity was Royal Enfield parent Eicher, the share price of which slumped dramatically, even though its monthly domestic sales had more than doubled to 73,646 machines.

CHINA — HOLIDAY STASIS

China’s Shanghai and Shenzhen stock exchanges were shuttered throughout the Chinese People’s Republic National Holiday Week (1-7 October). Therefore, no equities trading whatsoever took place. However, monthly gains or losses have been updated.