A snapshot of motorcycle and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 20 October 2023. BDN financial editor Roger Willis reports.
USA — BATTLEFIELD BLUES
Progressively rising geopolitical tensions in the Middle East dominated investor sentiment in both America and elsewhere, as prospects for an escalating conflict right across the region mounted and money moved out of equities into “safe-haven” assets. The price of gold, for instance, approached $2000 per troy ounce. And global oil benchmark Brent crude crept up to $93.30 a barrel, its highest level since the murderous Hamas attack on Israeli civilians first kicked off.
New York market indices fell remorselessly. Blue-chip S&P 500 stocks finished 2.4% down and the Dow Jones Industrial Average retreated by 1.7%. S&P’s MidCap 400 copped a 2.1% loss, while the tech-heavy NASDAQ Composite took the biggest hit, sinking by 3.2%.
Harley-Davidson’s share price lurched around in 20-buck ignominy for much of the week, before staging a minimalist rally on Friday which lifted it back to almost exactly 30 dollars. Analysts don’t expect that to last, predicting a slump for Q3 earnings in corporate results due on 26 October.
| Currency: dollar | Price | Week | Month |
| Harley-Davidson | 30.08 | +1% | -7.7% |
| Polaris Industries | 93.16 | -4.1% | -10.7% |
| Textron | 75.90 | -3.1% | -2.4% |
| Ideanomics (Energica) | 2.38 | +0.4% | +28% |
| Niu Technologies | 2.02 | -12.6% | -28.9% |
| LiveWire | 8.33 | +7.9% | +7.2% |
EUROPE — SEEKING COVER
A similar search for safe havens to stow their loot by European investors saw the Swiss franc climb to its strongest level against the euro in more than a year. Market indices relevant to the biker stocks we list were all on the back foot. Frankfurt’s Xetra Dax closed 2.6% in arrears. The Wiener Börse ATX in Austria sank by 3.6% and Milan’s FTSE MIB was 3.1% down. The actual four stocks in question fared consistently worse.
| Currency: euro | Price | Week | Month |
| BMW | 93.66 | -4.2% | -5.7% |
| Volkswagen | 116.00 | -4.5% | -12.3% |
| Pierer Mobility | 58.40 | -5.5% | -10.7% |
| Piaggio Group | 2.78 | -4.5% | -16.3% |
JAPAN — PARALLEL WOES
Although Japan is a considerable distance from the Middle East, it inevitably shares the same concerns about geopolitical issues impacting investment stability as the US and Europe. Unsurprisingly, therefore, the Nikkei 225 index spanning activity on stock exchanges in Tokyo and Osaka dived by 3.3%. All four indigenous motorcycle manufacturers shared some of the associated pain.
| Currency: yen | Price | Week | Month |
| Honda | 1632 | -3% | -6.8% |
| Yamaha | 3778 | -2.8% | -5.5% |
| Suzuki | 5788 | -2.8% | -3.9% |
| Kawasaki | 3433 | -6.7% | -8.5% |
INDIA — DIFFERENT NARRATIVE, SAME RESULT
Scandals involving the dodgy dealings of Indian multi-billionaire Gautam Adani and his gigantic Adani Group just keep on coming. Latest among these is a revelation that Adani, both India’s largest seaport operator and coal importer, has been shipping in coal at inflated prices and flogging it to power stations for years, thereby cashing in on overly expensive electricity generation for various industries.
Understandably, investors in such industries are not amused, particularly because Adani can get away with more or less anything, as a close personal chum of Indian prime minister Narendra Modi. Their reaction knocked 1.4% off Mumbai’s S&P BSE Sensex stock index over the past week. Interestingly, the two largest indigenous motorcycle manufacturers (Hero and Bajaj) managed blithe avoidance of any share in this grief.
| Currency: rupee | Price | Week | Month |
| Hero MotoCorp | 3211.25 | +3.6% | +6.2% |
| Bajaj Auto | 5489.30 | +8.6% | +9.8% |
| TVS Motor | 1596.45 | -0.3% | +6.9% |
| Eicher Motors | 3480.90 | +0.1% | +2.1% |
| Mahindra | 1558.25 | -0.3% | -3% |
CHINA — CHIPS WITH EVERYTHING
Apart from Middle Eastern troubles, the Biden administration has also been quietly tightening rules appertaining to exports of advanced computer chips for Chinese consumption, to hinder its economic recovery. This is apparently proving to be a successful obstacle to China’s growth, now reflected in weakening investor confidence showing through in market indices.
Shanghai’s SSE Composite felt some related pain in the past week, falling by 3.4%. The blue-chip CSI 300 covering both Shanghai and Shenzhen exchanges, closed 4.2% down. Every listed motorcycle manufacturer, dependent on semiconductor supplies, lost value on a weekly basis.
| Currency: yuan | Price | Week | Month |
| Qianjiang | 13.15 | -6.4% | -9.1% |
| Zongshen | 6.38 | -6.9% | -5.2% |
| Sundiro | 2.29 | -2.6% | -7.7% |
| CETC (Jialing) | 14.49 | -1.8% | -0.8% |
| Lifan | 3.48 | -5.9% | -5.4% |
| Loncin | 5.50 | -5% | -6.1% |
| Linhai | 8.68 | -3.4% | -6% |
| Guangzhou Auto | 9.94 | -3.6% | -1.1% |
| CFMoto | 111.07 | -17.8% | -20.8% |
| Xinri E-Vehicle | 13.26 | -4.1% | -4.7% |