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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 1 July 2022. BDN financial editor Roger Willis reports.

USA — BACK TO A MISERABLE FUTURE

Just as cynical observers anticipated, the previous week’s surge of optimism on Wall Street rapidly disappeared and gains were wiped out. With the narrative returning to an inflationary spiral and imminent recession, equity market indices soured once again, despite gung-ho rhetoric from the US Federal Reserve.

New York’s blue-chip S&P 500 index slid to a 2.2% weekly loss and the Dow Jones Industrial Average closed 1.3% down. S&P’s MidCap 400 deteriorated by 1.6%. Inevitably, such gloom spread elsewhere in the developed world.

HOGOMETER

When the NYSE opened on Monday, Harley-Davidson’s share price flatlined, clinging on to a negligible 0.1% positivity. Tuesday registered a 2.2% decline, followed by a further 2% retreat on Wednesday. Hopeful speculators hunted for upbeat cues on Thursday and Friday, eliciting respective 0.7% and 1.1% rises. But the net result was value shrinking by more than both S&P headline and MidCap red ink.

Currency: dollarPriceWeekMonth
Harley-Davidson32.00-2.4%-8.3%
Polaris Industries101.03-6.1%+0.9%
Textron61.25+1%-8.1%
Ideanomics

(Energica)

0.63-19.2%+3.3%

EUROPE — RUNNING OUT OF ROAD

The European energy crisis is now moving towards natural gas rationing and production cutbacks for industrial enterprises. Russia is progressively reducing supply volumes, subverting attempts to stockpile for winter. Taking due note, Germany’s Xetra Dax stock index fell by 2.3% and all three motorcycle-related listings in Frankfurt continued an uninterrupted decline which had begun in May.

In Italy, Milan’s MIB index fell more severely, 3.5% down. A €6bn Italian government fund-raising bond auction, with the highest yields in almost a decade, had conspired to depress equities too. Piaggio shares lost value for a fifth consecutive week.

Currency: euroPriceWeekMonth
BMW73.76-1.6%-11.1%
Volkswagen172.95-4.4%-17.7%
Pierer Mobility63.00-2.8%-14.3%
Piaggio Group2.27-1.3%-7.3%

JAPAN — ARGUING THE TOSS

A divide is developing between the Japanese central bank, which is refusing to impose monetary tightening measures to rein in what it considers is only “temporary” inflation, and large indigenous corporates — who are feeling the pain of rising input costs.

A survey released in the past week highlighted the depth of this disagreement and directly impacted investor confidence. Tokyo’s Nikkei 225 share index slumped by 2.1%. Japan’s big-four biker brands all suffered in this sudden sell-off.

Currency: yenPriceWeekMonth
Honda3193-3.8%-3.2%
Yamaha2444-5.8%-8%
Suzuki4165-1.2%+5.6%
Kawasaki2539-0.6%-7.3%

INDIA — ECONOMIC WOES MOUNT

News that India’s factory output had sunk to a nine-month low in June, due to inflation driving up the cost of raw materials, upset Mumbai’s investment applecart and the country’s leading BSE Sensex 30 stock index dropped by 1.5%. The effect on motorcycle manufacturers was mixed. Bajaj took the hardest hit but TVS — often a trend bucker — prospered.

Currency: rupeePriceWeekMonth
Hero MotoCorp2763.80+0.1%+7%
Bajaj Auto3624.60-4.9%-1.3%
TVS Motor860.45+7.7%+17.6%
Eicher Motors2782.80-3.3%+3.6%
Mahindra1107.35+3.3%+7.7%

CHINA — GUESSWORK?

It’s often difficult to discern what is actually going on in China, not least because the veracity of official government data is frequently questionable. Beijing insists that its economy is now recovering fast. And equity market indices currently tend to concur — having just made gains for a fifth consecutive week. Shanghai’s all-share SSE Composite and the blue-chip CSI 300 respectively rose by 1.1% and 1.6%. But among the eleven listed Chinese motorcycle producers, eight of them were losers.

Currency: yuanPriceWeekMonth
Qianjiang17.44-12.7%+13.2%
Zongshen6.16+1.3%+0.3%
Sundiro2.19+2.3%+11.2%
CETC (Jialing)11.06-2.7%-2.4%
Lifan5.38-5.9%+11.6%
Loncin4.64-6.3%-1.3%
Linhai8.50-3.4%-24.9%
Guangzhou Auto15.76-9.7%-2.2%
CFMoto112.00-10.6%-7.8%
Xinri E-Vehicle15.14-3.3%+3.8%

 

Currency: 

HK dollar

PriceWeekMonth
Jianshe5.33+3.5%+11%
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