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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 9 September 2022. BDN financial editor Roger Willis reports.

USA — RISK APPETITE RETURNS

On Wall Street, a shortened NYSE trading week didn’t start until Tuesday, and was initially troubled by unclear Federal Reserve interest-rate intentions. But then a sudden “risk-on” rally in advance of the key American inflation update due mid-month emerged. Market indices therefore rebounded after a sell-off spanning three consecutive weeks.

Thanks to this mood swing, the blue-chip S&P 500 and Dow Jones Industrial Average respectively closed 3.6% and 2.7% up. S&P’s MidCap 400 recovered by 4.4% and the tech-heavy NASDAQ Composite flaunted a 4.1% increase.

More and more electric motorcycle brands are now racing into US investor limelight. BDN’s share guide has been featuring Ideanomics, the American parent of Italian sparky superbike specialist Energica, for some time. Latest plugged-in ticker recruit is Niu Technologies, billed as the world’s largest ePTW manufacturer. But although Niu is a Chinese entity headquartered in Beijing, it has no domestic listing. Like Ideanomics, Niu’s shares are primarily traded on the NASDAQ virtual exchange in New York. And an electrifying prospect from the direction of Milwaukee is imminently set to join them.

HOGOMETER

Having slumped by 4.4% to $38.22 during the previous week, Harley-Davidson shares stayed there during Monday’s brief market vacation then fell even further on Tuesday, 1.1% down to $37.79. Generalised sentiment then swung the other way, accompanied by a specific incentive to buy Harley stock.

The company is about to separately list its hived-off LiveWire electric bike business on the NYSE, alongside a public share offer, potentially increasing the value of both parent and offspring — in which the former will retain a 74% stake. In response, speculators piled in on Wednesday, pushing Harley’s price up by 5.3%. That was compounded by a 0.6% lift on Thursday, two cents above the 40-buck barrier. A 3% gain on Friday followed, elevating the price by another dollar.

Currency: dollarPriceWeekMonth
Harley-Davidson41.07+7.5%+2.7%
Polaris Industries112.82+0.4%-6.2%
Textron65.89+6.5%-3.2%
Ideanomics

(Energica)

0.54-11.5%-23.9%
Niu Technologies5.39N/A-26.1%

EUROPE — ECB INFLATION ATTACK

The European Central Bank finally decided to bite the bullet with definitive anti-inflationary measures, raising the eurozone base interest rate by 0.75%. It had previously lifted borrowing costs for the first time in more than a decade during July. Laughable as it might sound, that move had involved an increase from minus 0.5% to zero. Cautious or what?

Such action, albeit tentative, was well-received. Major market indices remained positive for a second week on the trot. Germany’s Xetra Dax in Frankfurt rose by 0.3%. In Italy, Milan’s FTSE MIB index was almost muscular in response, adding 0.8%. However, among leading motorcycle-related automotives, only KTM parent Pierer Mobility benefited from improving investor interest.

Currency: euroPriceWeekMonth
BMW73.51-2.1%-6.4%
Volkswagen184.90-3%-6.4%
Pierer Mobility62.40+3.8%-0.5%
Piaggio Group2.39-3.2%-7%

JAPAN — GOVERNMENT INTERVENTION

Japanese industry minister Yasutoshi Nishimura announced forthcoming talks with the heads of Japan’s leading automotive manufacturers, aimed at ensuring their future in the face of decarbonisation. Toyota and Honda, both pursuing hydrogen ICE and fuel-cell solutions alongside battery-electric commitments, will be at the top table.

Such intervention and implied government support immediately boosted business confidence. Tokyo’s Nikkei 225 stock index flipped from a fortnight of losses, to close 2% higher with all four biker-related brands positive.

Currency: yenPriceWeekMonth
Honda3680+0.2%+3.5%
Yamaha2910+2.2%+4.2%
Suzuki4981+0.7%+3.2%
Kawasaki2613+0.4%-1.3%

INDIA — PRIME ATTRACTION

According to Reuters, foreign investors are piling money into local stocks once again, on expectations that growth for the Indian economy will be better compared to global peers. So shrugging off a fortnight of negativity, Mumbai’s benchmark BSE Sensex put on 1.7%.

Although tech stocks were to the fore, most biker-related prospects went along for the ride. But Bajaj, which is India’s second-biggest indigenous motorcycle manufacturer and largest PTW exporter, mysteriously took a spanking.

Currency: rupeePriceWeekMonth
Hero MotoCorp2838.45+0.5%+2.8%
Bajaj Auto3848.60-4.5%-4.7%
TVS Motor1053.80+2.7%+10.6%
Eicher Motors3473.15+1.5%+8.2%
Mahindra1301.25-1.1%+3.3%

CHINA — GOOD NEWS WEEK

Chinese consumer prices rose at a slower-than-expected pace in August, while the rate of factory-gate price inflation hit an 18-month low. At the same time, car sales staged a massive recovery, surging by 32.1% to 2.38 million, heavily incentivised by government EV grants.

Pushing aside a recent spate of gloomy economic indicators associated with the ongoing Chengdu Covid lockdown, Shanghai’s SSE Composite index and the blue-chip CSI 300 rebounded, respectively posting 2.4% and 1.7% weekly gains. Among listed motorcycle manufacturers, only three lost ground.

Currency: yuanPriceWeekMonth
Qianjiang26.45-4.7%+16.5%
Zongshen7.09+0.9%+3.1%
Sundiro2.60+2.4%+6.1%
CETC (Jialing)13.31-16.6%-5.5%
Lifan4.80+3.4%-7%
Loncin5.23+5.4%+6.1%
Linhai8.95N/A+0.8%
Guangzhou Auto13.98+0.3%-6.2%
CFMoto168.92+3.8%+16.8%
Xinri E-Vehicle23.07+1.4%+25.6%

 

Currency: 

HK dollar

PriceWeekMonth
Jianshe5.18-5.5%-7.7%
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