Share prices and market analysis

A snapshot of motorcycle and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 9 February 2024. BDN financial editor Roger Willis reports.

Tech stocks in particular continued to push US indices towards new highs, with especially strong quarterly corporate results from the microchip sector. Unsuprisingly, the NASDAQ Composite led this charge, with a 2.3% weekly gain, but Wall Street’s benchmark blue-chip S&P 500 was also lifted by big advances for the “Magnificent Seven” techs it features, rising by 1.4%. Remarkably, the Dow Jones Industrial Average almost flatlined, adding just 0.1% while this was going on.

S&P’s MidCap 400 did better, 1.5% up, as lesser mortals went along for the ride. Harley-Davidson’s Q4 and full-year key metrics were hardly uplifting but, after beating a brief retreat when the results were released, investors gave it a considered nod and Harley shares closed the week positive.

European equities fell, pulled down by a decline for energy stocks. Norwegian energy giant Equinor had reported a steep drop in quarterly earnings due to “significantly” lower gas prices. In response, Frankfurt’s key Xetra Dax market index flatlined. However, Teutonic automotives — including the motorcycle-related businesses of interest here — dodged this negative trend.

Although Austria’s Wiener Börse ATX sank by 2.4%, better-than-expected preliminary full-year results for KTM parent Pierer Mobility, which has had a fairly torrid time over the past 12 months, comprehensively saved its bacon. Italian investors also ignored Northern woes. Milan’s FTSE MIB rose by 1.4% and Piaggio shares remained marginally positive.

A surge of Q3 corporate results pushed Tokyo and Osaka’s Nikkei 225 index briefly up through the 37,000-point line for the first time in 34 years on Thursday. But this phenomenon had been largely powered by a few heavily-weighted stocks.

Among the three biker brands reporting three-quarterly performances, Honda was right on the money, thanks to revenue and profits blossoming in both its motorcycle and car businesses. Suzuki was less impressive in both its car and bike branches, including an Asian sales slump for the latter. Investors punished the share price accordingly.

Despite Kawasaki’s Powersports & Engine division delivering lamentable Q3 figures showing motorcycle sales revenue declining in both developed and emerging markets, and associated profit plunging, saving graces elsewhere in the Kawasaki Heavy Industries conglomerate protected its share value from retribution.

Mumbai’s S&P BSE Sensex 30 and the NSE Nifty 50 market indices both swivelled onto the back foot, with respective 0.7% and 0.4% losses. Among India’s five motorcycle majors, only the biggest — Hero MotoCorp — managed to shrug off weakening sentiment.

Following the previous week’s massive stock market rout, Beijing government officials fought valiantly to restore market confidence, through a team of state-run financial institutions stepping up their huge strategic share purchases. A shortened four-session trading week in advance of Chinese New Year celebrations. spanning a shutdown 9-15 February holiday period, certainly helped.

So when the “Year of the Dragon” arrived, Shanghai’s SSE Composite and the blue-chip CSI 300 market indices had respectively revived to close 5% and 5.8% up. Across China’s ten listed motorcycle manufacturers, some recovered but others most definitely didn’t. Notable among the ongoing losers were Honda JV partner Sundiro, Yamaha affiliate Linhai and Sunra electric motorcycle brand parent Xinri E-Vehicle.