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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 8 April 2022. BDN financial editor Roger Willis reports.

USA — DOUBLE JEOPARDY

American investors spent the week tearing their hair out, trying to decide what impact fiscal tightening to counter rampant inflation, by the US Federal Reserve and central bankers elsewhere, would have on share prices. Fairly panic-stricken “portfolio adjustments” ensued, driven by those who suspected that imminent interest rate rises also risked causing a global recession.

Wall Street indices all finished negative, after some wild daily swings. The blue-chip S&P 500 and parallel benchmark Dow Jones Industrial Average closed with respective 1.3% and 0.3% weekly losses. S&P’s MidCap 400 fell by a more extreme 3.4%. The conflict in Ukraine was temporarily parked on New York’s back-burner.

HOGOMETER

Harley-Davidson was a typical victim of the aforementioned outbreak of jitters. A very marginal 0.1% rise for its shares on Monday gave little notice of what was to come. On Tuesday, the price plunged by 5.1%. A further 1% loss followed on Wednesday, taking it down to a weekly nadir of $36.44. But that combined retreat was enough to get chancers “buying the dip”. Respective 1.5% and 2.5% recoveries on Thursday and Friday pulled Harley’s feet out of the fire for a partial respite.

Currency: dollarPriceWeekMonth
Harley-Davidson37.90-2.2%-1.6%
Polaris Industries104.55-1.8%-1.8%
Textron68.29-6.5%-1.3%

EUROPE — LOCK AND LOAD

Anti-inflationary measures were certainly on the European agenda too. But progress or otherwise in the war next door grabbed most headlines. NATO fears of escalation are mounting as the stream of supportive armaments gifted to Ukraine’s defence forces grows remorselessly.

The past week’s munitions haul included T-72 main battle tanks from the Czech Republic and armoured personnel carriers from as far away as Australia, as well as a lot more satisfactorily lethal anti-aircraft and anti-tank missiles, plus long-range artillery ammunition, from the UK, France and US.

Inevitably, investment confidence throughout Europe was destabilised by these gung-ho memes and market indices sank. In Germany, Frankfurt’s Xetra Dax finished 1.1% down. All three Teutonic automotives with biker connections listed here declined by larger margins. Milan’s MIB index on the Borsa Italiana fell by 1.4%. Piaggio shares lost twice that. Energica’s price has stagnated for five weeks now, which suggests this Italian electric motorcycle manufacturer’s free float has dried up.

Currency: euroPriceWeekMonth
BMW77.00-2.5%+6.3%
Volkswagen217.10-4.9%+7.6%
Pierer Mobility80.50-1.3%+1.8%
Piaggio Group2.44-2.8%+2.5%
Energica3.19N/AN/A

JAPAN — YET ANOTHER SQUEEZE

Having suspended Russian coal imports and cut business ties to Putin’s regime, the Japanese have appropriately self-harmed. But their supply-chain issues caused by Russia’s no-fly zone have paled into insignificance against much worse ones due to the gigantic Covid lockdowns in China’s Shanghai and Shenzhen provinces — the industrial heartland upon which Japanese car and motorcycle manufacturers depend for a lot of components. Thus afflicted, Tokyo’s Nikkei 225 index slid 2.5% down and all four indigenous biker listings went south by greater degrees.

Currency: yenPriceWeekMonth
Honda3212-7.3%+3.1%
Yamaha2550-7.2%+12.6%
Suzuki3884-6.6%+4.1%
Kawasaki2124-4.3%+5.4%

INDIA — PUTIN’S PETROLHEADS

India’s BSE Sensex 30 stock index continued to gain value, but by a much smaller margin of just 0.3% this week, as its business community awaits a promised flood of ultra-cheap black gold from friends in Moscow. All five major Indian motorcycle makers, perhaps understandably as go-go juice junkies, raced well ahead of the market average.

Currency: rupeePriceWeekMonth
Hero MotoCorp2362.45+5.5%+1.3%
Bajaj Auto3810.35+1.9%+11.3%
TVS Motor653.40+3.9%+12.3%
Eicher Motors2555.20+3%+11.5%
Mahindra857.40+3.7%+16.7%

CHINA — ISN’T WORKING

The previous week’s brief burst of positivity vanished in the face of President Xi Jinping’s rigid enforcement of his zero-Covid policy, which currently includes 26 million people locked down in the city of Shanghai alone and many more in adjacent conurbations. Virtually all factories on a Shanghai-Shenzhen axis have ground to a halt and container traffic is at a stand-still in related port facilities.

Reacting to export revenue collapse (and presumably the inconvenience of home-working for investors), Shanghai’s SSE Composite index and the blue-chip CSI 300 respectively fell by 0.9% and 1.1%. Eight of the eleven listed Chinese motorcycle manufacturers, many of which must have suspended production, were losers.

Currency: yuanPriceWeekMonth
Qianjiang11.55-3%-5%
Zongshen6.12+2.5%+0.3%
Sundiro2.10+3.4%-7.1%
CETC (Jialing)12.00-10.7%-16.6%
Lifan4.28-3.8%-12.5%
Loncin4.26-2.5%-3.8%
Linhai9.11-2.5%-6.8%
Guangzhou Auto11.83+5.2%+1.7%
CFMoto101.75-3.9%-6.9%
Xinri E-Vehicle13.15-2.8%-7.6%

 

Currency: 

HK dollar

PriceWeekMonth
Jianshe5.27-4.2%+0.6%
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