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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 19 August 2022. BDN financial editor Roger Willis reports.

USA — SHORT LIFE FOR OPTIMISM

Renewed confidence in US equities market growth didn’t even last a week, after it transpired that the past month’s recovery had been primarily driven by hedge funds unwinding bearish bets designed to profit from decline, rather than any fresh appetite for investment risk.

Midweek news that UK inflation had now entered double-digit percentage territory also rippled through treasury bond markets, pushing up yields and therefore the cost of borrowing on both sides of the Atlantic. Adding to this witch’s brew of negativity were central bankers everywhere reiterating their commitment to harsh counter-inflationary base rate increases.

The recession word back on everybody’s lips, a bright start for American stock indices staggered erratically and then faded away. The blue-chip S&P 500 and Dow Jones Industrial Average finished on respective 1.2% and 0.2% weekly losses. S&P’s MidCap 400 fell further by 1.4%.

HOGOMETER

Harley-Davidson shares began with some leaps of faith, rising by 1.8% on Monday and a firmer 3.6% on Tuesday. But Wednesday warned of worse to come, the price retreating by 1%. Thursday’s 1.3% bounce-back proved to be temporary, followed in short order by a 2.5% decline on Friday as markets went thoroughly sour.

Currency: dollarPriceWeekMonth
Harley-Davidson41.20+3.1%+19%
Polaris Industries121.54+1.1%+6.5%
Textron66.05-3%+3.5%
Ideanomics

(Energica)

0.61-14.1%-12.9%

EUROPE — SPREADING PRESSURE

Britain wasn’t alone in the inflationary mire with July’s 10.1% annualised increase, its highest rate for 40 years and the worst among G20 countries. Eurozone inflation had also risen, from 8.6% in June to 8.9% in July, pushing up yields on Germany’s ten-year Bund and Italy’s equivalent. And the former is now officially teetering on the brink of recession.

Unsurprisingly, equities traders eschewing holidays and still at work in both these leading industrial nations ran for cover. Market indices sank. Frankfurt’s Xetra Dax lost 1.8% and the FTSE MIB in Milan dropped by 1.9%. All four motorcycle-related European listings fell in value, led by maximum misfortune for BMW.

Currency: euroPriceWeekMonth
BMW75.81-3.5%-1.7%
Volkswagen193.35-2.1%+1.5%
Pierer Mobility61.20-2.4%-3%
Piaggio Group2.52-1.9%+4.1%

JAPAN — THREE OUT OF FOUR AIN’T BAD

Japan’s Nikkei 225 index repeated the previous week’s 1.3% gain. Honda, Yamaha and Suzuki continued to bask in investor approval for various recently released quarterly corporate results, largely displaying the efficacy of their Asian operations. Although Team Green’s motorcycle division deserved a share of their glory, less enthralling sectors of the Kawasaki Heavy Industries conglomerate spoilt any biker party.

Currency: yenPriceWeekMonth
Honda3713+4.4%+7.1%
Yamaha2892+3.5%+11.7%
Suzuki4882+1.2%+10.4%
Kawasaki2624-0.9%+1.5%

INDIA — CALM BEFORE SALES STORM

During August’s quiet period before a run-up towards the Indian autumnal festival season, concluding with the peak-sales frenzy of Diwali, Mumbai investors tend to slumber. The Bombay Stock Exchange BSE Sensex 30 index virtually flatlined over the past week, on a marginal gain of just 0.3%.

Most leading indigenous motorcycle manufacturer share prices haven’t been far off that trend for a fortnight. Recent exception was Royal Enfield parent Eicher, which has just launched yet another new model spun off from its wildly successful 350cc platform, attracting headline plaudits.

Currency: rupeePriceWeekMonth
Hero MotoCorp2838.65+2.8%-1.1%
Bajaj Auto4074.55+0.9%+0.5%
TVS Motor958.75+0.7%+8.2%
Eicher Motors3424.10+6.7%+8.8%
Mahindra1239.40-1.6%+4.9%

CHINA — ECONOMIC GROWTH STALLED

Latest Chinese government economic data has shown seriously below-target recovery. Year-on-year retail sales growth in July was just 2.7%, against a forecast 5% increase. Industrial production was 3.8% higher, under a predicted 4.6% improvement. In a belated and tentative attempt to stimulate activity, China’s central bank responded by cutting its medium-term lending rate into the banking system by miserly 0.1%.

Chinese equities investors were unimpressed. Shanghai’s SSE Composite all-share index closed 0.6% down by Friday. The blue-chip CSI 300 fell by 1%. Almost half of biker listings were losers — although there were some substantial performances among the winners, most notably Sunra electric motorcycle parent Xinri E-Vehicle.

Currency: yuanPriceWeekMonth
Qianjiang24.46+7.8%+32.5%
Zongshen6.85-0.4%+0.6%
Sundiro2.53+3.3%+7.2%
CETC (Jialing)15.75+11.8%+31%
Lifan5.13-0.6%-0.6%
Loncin4.91-0.4%+0.6%
Linhai9.13+2.8%+3.3%
Guangzhou Auto14.26-4.3%-6.7%
CFMoto145.48+0.6%+13.8%
Xinri E-Vehicle23.64+28.7%+12.3%

 

Currency: 

HK dollar

PriceWeekMonth
Jianshe5.40-3.7%+8.4%
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