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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 15 July 2022. BDN financial editor Roger Willis reports.

USA — INFLATION OUTPACES ESTIMATES

Mid-week news that US consumer price inflation had defied forecaster expectations of a fall and instead risen to an annualised 9.1% in June, from 8.6% in May, was hardly going to calm investment prospects. American energy prices had also climbed to a new high of 41.6% up over the past 12 months too.

Wall Street market indices therefore bounced around on a daily basis and all of them finished negative. The blue-chip S&P 500 index and S&P’s MidCap 400 respectively closed 0.9% and 0.7% in arrears. The Dow Jones Industrial Average was a more marginal 0.2% down. However, the conclusion could have been much worse. Investors had staged a partial grasping-at-straws recovery on Friday, thanks to the convenient appearance of some dubiously strong American retail sales figures for June.

HOGOMETER

Harley-Davidson share movements amply illustrated the predominantly febrile mood but narrowly avoided this overall trend. Monday’s 1.8% loss was replaced by a 1.4% gain on Tuesday. Then retreats of 0.2% on Wednesday and 2.6% on Thursday followed, as traders digested inflation data implications. Finally, Friday’s unbeat swing delivered a 3.7% rise. This still left Harley with only a very marginal advance and analysts are predicting imminent pain from underperforming half-year results due for release shortly.

Currency: dollarPriceWeekMonth
Harley-Davidson32.57+0.4%+5.8%
Polaris Industries107.86-3.7%+10.6%
Textron60.15-1.5%+2.3%
Ideanomics

(Energica)

0.71-2.7%+6%

EUROPE — DOLLAR PARITY PUNISHMENT

Concerns over global economic health have been progressively strengthening the US dollar and the euro has now sunk in value to virtual parity. This will dramatically raise oil and gas energy costs for eurozone countries forced into greater dependence on imports from the US by their supply stand-off versus Russia.

Understandably, European equity traders ran for cover and eurozone market indices dropped. Frankfurt’s Xetra Dax index closed 1.2% down and the Borsa Italiana MIB in Milan took a harsher 3.9% dive. All four biker-related listings were negative — KTM parent Pierer losing ground for a sixth consecutive week.

Currency: euroPriceWeekMonth
BMW75.12-1.2%-3.2%
Volkswagen184.40-2.3%+1.5%
Pierer Mobility62.00-1%-8%
Piaggio Group2.29-1.3%-1.3%

JAPAN — RISING SUN, FALLING YEN

The assassination of former Japanese prime minister Shinzo Abe caused remarkably little angst among traders on the Tokyo stock exchange. Its Nikkei 225 index put on 1% while the rest of the nation mourned. Burgeoning US currency strength is generating raw nerves, though — the yen having just hit a 24-year low against the dollar.

Motorcycle manufacturer share performance was mixed, as stock-pickers weighed the odds between winners and losers in their quarterly corporate results, all due in early August.

Currency: yenPriceWeekMonth
Honda3373+3.8%+3.4%
Yamaha2458-1.9%-3.8%
Suzuki4329+2.1%+7%
Kawasaki2451-1.6%-11.4%

INDIA — THE PRICE AIN’T RIGHT

Mumbai’s BSE Sensex 30 stock index fell by 1.3%, breaking a four-week run of gains. Main driver was apparently the fear of aggressive interest rate hikes by central banks globally, forcing up the cost of overseas borrowing.

However, ongoing domestic retail motorcycle sales growth ensured that bike producer share prices were generally unsullied. The only loser was market leader Hero MotoCorp, which had just announced yet another set of across-the-board price rises to counter inflation — a move that was clearly unpopular among investors.

Currency: rupeePriceWeekMonth
Hero MotoCorp2800.05-1.7%+13.5%
Bajaj Auto3913.35+2.3%+7.7%
TVS Motor871.65+3.9%+23.8%
Eicher Motors3034.00+3.5%+16.5%
Mahindra1172.50+3.4%+17.5%

CHINA — NUMBERS CRUNCH

Chinese government statisticians revealed that a strictly applied “Zero Covid” lockdown policy had resulted in sharp contraction for China’s economy during Q2. Although overall growth was up by a pathetic 0.4%, way below previous official forecasts, GDP in the quarter had fallen by 2.6%.

That news spannered six consecutive weeks of rising market indices. Shanghai’s all-share SSE Composite plunged by 3.8% and the blue-chip CSI 300 suffered a bigger 4.1% dive. Only three of the eleven listed Chinese motorcycle manufacturers remained in positive territory.

Currency: yuanPriceWeekMonth
Qianjiang16.00-1.8%-20.6%
Zongshen6.66+11.4%+7.8%
Sundiro2.36+0.9%+8.8%
CETC (Jialing)10.15-7.1%-7.8%
Lifan5.00-6.5%-4.6%
Loncin4.44-3.7%-10.7%
Linhai8.12-0.9%-7.5%
Guangzhou Auto16.07-3.6%-6.6%
CFMoto115.10-7.5%-10.6%
Xinri E-Vehicle17.28+15.7%+16.3%

 

Currency: 

HK dollar

PriceWeekMonth
Jianshe5.30-1.3%+1.5%
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