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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 28 October 2022. BDN financial editor Roger Willis reports.

USA — RESULTS COUNT

A welter of better-than-expected quarterly corporate results continued to overwhelm pessimism about the US economy for a second week, keeping investors busy betting on hot prospects. Most key indices blossomed. The blue-chip S&P 500 and Dow Jones Industrial Average respectively climbed by 4% and 5.7%. S&P’s MidCap 400 put on 5.3%. Harley-Davidson, which had posted Q3 figures impressively exceeding analyst estimates, was a star of the MidCap show.

However, some of the Silicon Valley cyber-giants — Alphabet, Amazon, Facebook parent Meta and Microsoft — significantly underperformed and saw billions of dollars wiped off their market capitalisations. The tech-heavy NASDAQ Composite, where they are listed, therefore closed just 2.2% up.

HOGOMETER

Harley-Davidson’s charge towards market glory began with a squeak rather than roar, losing a single cent on Monday to effectively stand still. But then on Tuesday, eve of its results presentation, investors smelled money and the share price rose by 3.4%. Wednesday’s welcome bean-counting news immediately stacked on another 12.6%. A minor slide on Thursday didn’t point to any real change of direction and the week concluded with a further 3.8% gain on Friday.

Currency: dollarPriceWeekMonth
Harley-Davidson43.22+20.4%+23.9%
Polaris Industries101.82+9.8%+6.5%
Textron68.50+8.8%+17.6%
Ideanomics

(Energica)

0.26N/A-7.1%
Niu Technologies2.70-14.3%-34.1%
LiveWire8.00+4%-15.1%

EUROPE — CONFLICTING MESSAGES

The European Central Bank tried to be a stabilising anti-inflationary influence, doubling its base interest rate to 1.5% during the past week. That helped to lift the euro back above $1 for the first time in a month. But S&P Global’s eurozone composite purchasing managers’ index fell to its lowest for two years. This was seen as confirmation that the eurozone economy is already in recession.

Despite such indecisive sentiment, market indices in Europe’s largest industrial countries had completed a consistent month of positivity across October, growing firmer in the final week as quarterly corporate reporting began. Frankfurt’s Xetra Dax closed 4% up and the FTSE MIB in Milan stacked on 4.5%. Although excellent nine-monthly figures for Piaggio weren’t released until after the Borsa Italiana had closed on Friday afternoon, they were widely anticipated — hence a preceding sharp weekly share price rise.

Currency: euroPriceWeekMonth
BMW79.56+2.8%+13.7%
Volkswagen169.05-0.4%+0.2%
Pierer Mobility57.80N/A+1.8%
Piaggio Group2.50+11.1%+20.2%

JAPAN — FIGHTING LIKE CATS IN A SACK

Japanese prime minister Fumio Kishida launched a huge domestic stimulus package worth £170bn in proper money (actually 29.1 trillion yen), to counter the effects of rampant inflation and his nation’s pathetically weak currency. This came just hours after independent Bank of Japan governor Haruhiko Kuroda ruled out any imminent rise in interest rates and vowed continuity of his controversial ultra-loose monetary policy. To say that Kishida and Kuroda don’t get on would be an understatement.

Standing aside from this confrontation, Japan’s business community was far more interested in forthcoming quarterly corporate performance data. Flipping from a fortnight of negativity, Tokyo’s Nikkei 225 share index added 0.8%. Typical of the mood, all four indigenous motorcycle manufacturers made gains in value.

Currency: yenPriceWeekMonth
Honda3319+1.9%+5.8%
Yamaha3010+0.4%+11.2%
Suzuki4825+4.6%+7.7%
Kawasaki2459+3%+12.4%

INDIA — HANGOVER TIME

The Diwali Festival of Lights had peaked on Monday, with its traditional pyrotechnic conflagration, and much of India’s business world spent the rest of this week trying to deal with a collective hangover. Although Mumbai’s two stock exchanges (BSE and National) reopened, trading was desultory and transaction volumes very low.

Currency: rupeePriceWeekMonth
Hero MotoCorp2649.85+3.1%+3.9%
Bajaj Auto3670.70+0.1%+4.1%
TVS Motor1127.15-1.3%+9.2%
Eicher Motors3745.75+3.2%+2%
Mahindra1311.65+4.4%+3.4%

CHINA — BUSINESS OPTIMISM EVAPORATES

More than half of Chinese companies surveyed by an international business lobby in Shanghai believe the country’s economic management is deteriorating. China’s economy grew by only 3.9% in Q3, according to latest data, well under Beijing’s already historically low 5.5% annualised growth target. And the World Bank anticipates China will underperform Asian growth as a whole this year for the first time since 1990.

Unsurprisingly, given such an unmitigated plethora of gloom, plus the ascendancy of a revised Communist elite intent on resetting political imperatives away from free enterprise, markets ran for cover big-style. Shanghai’s SSE Composite index plunged by 4.2% and the blue-chip CSI 300 took a 5.4% dive. Eight of the eleven listed Chinese motorcycle producers were losers.

Currency: yuanPriceWeekMonth
Qianjiang19.09-8.7%-15.2%
Zongshen6.49+0.9%+8.9%
Sundiro2.39-8.1%-1.6%
CETC (Jialing)13.66+7.3%+7.1%
Lifan4.27-4.3%-8.6%
Loncin5.76+13.2%+27.7%
Linhai7.96-2.7%+3.1%
Guangzhou Auto11.50-7.4%-5.2%
CFMoto132.97-11.3%-1.1%
Xinri E-Vehicle22.27-2.8%+15%

 

Currency: 

HK dollar

PriceWeekMonth
Jianshe5.15-2.8%-1%
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