A snapshot of motorcycle and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 2 August 2024. BDN financial editor Roger Willis reports.
USA — RUN FOR COVER AGAIN
Still hobbled by high interest rates, evidence emerged that the US economy was also teetering on the edge of recession. This news sparked an abrupt global equities sell-off. All New York market indices sank. Both the blue-chip S&P 500 and Dow Jones Industrial Average closed 2.1% down. The recent rally in smaller US manufacturing stocks collapsed, initiating a 4.1% dive for S&P’s Mid-Cap 400. Tech stocks on the NASDAQ Composite were all over the place, as the index dropped by 3.4%.
Currency: dollar | Price | Week | Month |
Harley-Davidson | 35.79 | +0.8% | +12.3% |
Polaris Industries | 78.92 | -4.6% | +6.3% |
Textron | 87.23 | -4.7% | +2.7% |
Ideanomics (Energica) | 0.61 | 12.9% | -34.4% |
Niu Technologies | 1.91 | -6.4% | N/A |
LiveWire | 6.57 | -16.7% | -9% |
EUROPE — SUFFERING THE SAME
Key European indices were similarly assailed, as investor panic spread. Frankfurt’s Xetra Dax plunged by 4.1%. The FTSE MIB in Milan was hit harder, 5.3% in arrears. The Wiener Börse ATX finished 3.9% lower. All four motorcycle-related listings, spanning Germany, Austria and Italy, copped greater drops in value.
Currency: euro | Price | Week | Month |
BMW | 82.06 | -6.3% | -6.4% |
Volkswagen | 103.80 | -5.7% | -7.6% |
Pierer Mobility | 28.40 | -6.3% | -2.1% |
Piaggio Group | 2.52 | -7.4% | -11.9% |
JAPAN — HARI KARI TIME?
The Japanese version of this sell-off saw Tokyo and Osaka’s Nikkei 225 index decline by 4.7%. Matters were made worse by a surprise mid-week interest rate hike by the Bank of Japan, propelling the yen higher. Grief was also accelerated by heavily-leveraged retail investors desperate to get their money out of popular exchange-traded funds. One Tokyo securities brokerage framed this as “a profit-taking frenzy”. Inevitably, the share prices of Japan’s four indigenous motorcycle-associated brands took a hammering.
Currency: yen | Price | Week | Month |
Honda | 1522 | -3.7% | -12.2% |
Yamaha | 1250 | -8% | -21.2% |
Suzuki | 1616 | -4.2% | -10.1% |
Kawasaki | 4735 | -11.6% | -22.7% |
INDIA — DISTANCED CONCERNS
Indian sell-off impact was relatively muted. Mumbai’s S&P BSE Sensex and NSE Nifty 50 indices respectively retreated by 0.4% and 0.5%. Among major motorcycle producers, shares in Royal Enfield parent Eicher and BSA owner Mahindra were hardest hit. Hero MotoCorp was also a loser. Bajaj and TVS escaped pretty much unscathed.
Currency: rupee | Price | Week | Month |
Hero MotoCorp | 5274.20 | -3.7% | -5.1% |
Bajaj Auto | 9616.20 | +1.3% | -0.2% |
TVS Motor | 2566.05 | +2.3% | +5.6% |
Eicher Motors | 4726.70 | -5.7% | -0.2% |
Mahindra | 2749.65 | -4.8% | -4.5% |
CHINA — MISSED THE SHOW
China was looking elsewhere, as President Xi Jinping urged government-controlled commercial investment funds to cut their interest rates, with the intention of boosting Chinese domestic consumer demand. Shanghai’s all-share SSE Composite index responded with a modest 0.5% rise. But the blue-chip CSI 300 went the other way, falling by 0.7%.
Among motorcycle producer listings, non-state independents Zongshen and Loncin attracted keen investor interest. But overall enthusiasm was mixed. KTM parent Pierer’s big chum CFMoto continues on a losing streak, which may involve to their relationship woes.
Currency: yuan | Price | Week | Month |
Qianjiang | 16.00 | +6% | +5.5% |
Zongshen | 15.68 | +40.6% | +60.7% |
Sundiro | 3.05 | +1.7% | +4.1% |
CETC (Jialing) | 11.29 | +6.6% | +9.4% |
Lifan | 4.46 | -2.6% | +34.3% |
Loncin | 6.80 | +14.7% | +5.6% |
Linhai | 7.05 | -6% | +6% |
Guangzhou Auto | 8.00 | N/A | +6.8% |
CFMoto | 130.53 | -6.3% | -6.9% |
Xinri E-Vehicle | 9.65 | +3.4% | +3.5% |