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 30 August 2024. BDN financial editor Roger Willis reports.

USA — MIXED MESSAGES AGAIN
The US Federal Reserve’s preferred measure of inflation held steady, boosting confidence that the central bank would come good on its promise to cut interest rates in September. That helped many prime Wall Street stocks to edge higher. The blue-chip S&P 500 and Dow Jones Industrial Average indices therefore both closed with modest gains, respectively 0.2% and 0.9% up.

However, the highly-anticipated Q2 earnings release of bellwether US microchip giant Nvidia proved to be a disappointment. A lot of techie speculators ran for cover and the tech-heavy NASDAQ Composite index finished 0.9% down. S&P’s MidCap 400, where most powersports stocks lurk, was also generally on the back foot too, ending the week 0.2% in arrears. Harley-Davidson and Indian Motorcycle parent Polaris led relatively minor losers.

Ideanomics, parent of Italian electric superbike brand Energica, took some really major punishment from investors, its already weak share price mercilessly hammered. Question marks over an investigation into executive fraud charges at the company, initiated by the US Securities and Exchange Commission regulator, are still not completely resolved.

EUROPE — MORE MOOD IMPROVEMENT
Further indicators that inflation was also still steadily slowing in European economies again boosted market indices across the continent. Germany’s blue-chip Xetra Dax in Frankfurt and the Wiener Börse ATX in Austria posted respective 1.5% and 1.1% weekly gains. The FTSE MIB in Milan did even better, rising by 2.1%. However, most automotive stocks with motorcycling relationships didn’t benefit. Most notably, KTM parent Pierer Mobility’s share price drifted downwards after fairly horrendous half-year results revelations. Conversely, Piaggio in Italy bucked this negative trend.

JAPAN — BANKERS BLAMED
Gloom continued to pervade Tokyo and Osaka’s Nikkei 225 index, which managed only a 0.7% gain, declining from 0.8% in the previous week. Ongoing Bank of Japan blundering currency management is held responsible by investors. Despite a swathe of good Q1 corporate results, motorcycle manufacturing stocks are hardly popular purchases against this background.

INDIA — POSITIVE SWING
Indian investment activity rallied somewhat, as evidenced by perkier Mumbai market indices. S&P’s BSE Sensex 30 and the National Stock Exchange Nifty 50 rose respectively by 1.6% and 1.7%. Without exception, share prices for the five indigenous motorcycle manufacturers added value. Bajaj Auto was the pole-sitter.

CHINA — HOPE SPRINGS ETERNAL
Chinese market indices were hardly heartening, with respective 0.4% and 0.2% retreats for Shanghai’s SSE Composite and the blue-chip CSI 300. But there wasn’t a single loser among the nation’s ten listed motorcycle producers. Best gains were reserved for the independents, without Commie shareholding and management interference. In particular, Qianjiang, Zongshen, Loncin, CFMoto and SunRa electric bike specialist Xinri stood out.