Wednesday, May 22, 2024
HomeNEWSFINANCIALSHARE PRICES AND MARKET ANALYSIS

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 18 March 2022. BDN financial editor Roger Willis reports.

USA — BACK TO FUNDAMENTALS

Despite some choppy trading, the US Federal Reserve’s decision to tighten monetary policy via an interest rate rise — countering inflation which has now reached 7.9% in America — earned applause. Markets stabilised and rebounded sharply as the weekend approached.

Indices surged with this return to normality, abetted by somewhat naive optimism that peace negotiations between Kyiv and Moscow were looking good to go. Wall Street’s blue-chip S&P 500 and the Dow Jones Industrial Average respectively stacked on 6.2% and 5.5%, negating much of the recent sell-off. S&P’s MidCap 400 added an almost equally strong 5.3% contribution.

HOGOMETER

Harley-Davidson was nevertheless a captive of latent volatility. Its share price fell by 1.5% on Monday and then recovered by only 0.3% on Tuesday. However, Wednesday’s US base-rate hike elicited a fat 3.7% gain, tempered by decline of 0.9% on Thursday. Finally, as overall confidence firmed up on Friday, Harley added a further 3.2% to ascend back past the 40-buck marker.

Currency: dollarPriceWeekMonth
Harley-Davidson40.35+4.8%-4%
Polaris Industries110.26+3.6%-11.5%
Textron75.15+8.6%+8.1%

EUROPE — DON’T MENTION THE WAR

Similar influences ensured the European mood also continued to recover rapidly, wiping out a large proportion of losses incurred during the massive sell-off immediately following Russia’s invasion of Ukraine. Market indices throughout Europe added value at pace for a second consecutive week. In Germany, Frankfurt’s Xetra Dax finished 5.8% up and Italy’s MIB in Milan put on 5.1%.

Both BMW and Volkswagen released solid full-year corporate results mid-week, helping to maintain share-price recovery. Their respective motorcycling sidelines, BMW Motorrad and Ducati, had made particularly impressive contributions.

Currency: euroPriceWeekMonth
BMW75.90+4.8%-20.4%
Volkswagen220.20+9.1%-9.1%
Pierer Mobility80.00+1.1%-7.6%
Piaggio Group2.52+5.9%-11.3%
Energica3.19N/A+0.9%

JAPAN — BULLISH MOOD

The Japanese government pointedly avoided commitment to tightening monetary policy in line with the US, as its central bankers assured indigenous exporters that a generous stimulus package would remain in place. Investors responded by leaping back into “buy” mode and Tokyo’s Nikkei 225 index went ballistic, rising by 6.6%. All four indigenous motorcycle manufacturers regained some recently lost ground.

Currency: yenPriceWeekMonth
Honda3342+7.3%-9.4%
Yamaha2495+10.2%-8.2%
Suzuki4062+8.8%-15.1%
Kawasaki2121+5.3%+0.2%

INDIA — ENERGISED BY CHEAP ENERGY

Exulting in recent election victories, mercurial Indian prime minister Narendra Modi decided to thumb his nose at the Americans, accepting an opportunity to quadruple imports of Russian oil at dramatically discounted prices. (Modi also gets most of India’s munitions requirements from Russia’s bargain weapons basement and regards Vladimir Putin as a special chum, irrespective of US sanctions risk.)

The prospect of much cheaper go-go juice to fuel their wilting economy got Indian investors cheering in stock-exchange aisles and Mumbai’s BSE Sensex 30 market index climbed by 4.2%. All five leading indigenous motorcycle producers fired up and went along for the ride.

Currency: rupeePriceWeekMonth
Hero MotoCorp2419.90+3.8%-12.8%
Bajaj Auto3650.45+6.6%+0.5%
TVS Motor611.70+5.2%-7.8%
Eicher Motors2436.95+6.4%-9.7%
Mahindra794.40+8.1%-6.8%

CHINA — COVID’S REVENGE

Apart from a growing chance of exclusion from Western markets by anti-Russia sanctions, owing to President Xi Jinping’s misaligned sympathies, and a generally weakening economy, Chinese exports to Europe and elsewhere are now the victim of a massive Covid outbreak too. Pursuing its zero-toleration lockdown policy, China’s government has shuttered the entire industrial megalopolis of Shenzhen, including key container port facilities.

To hopefully reduce the severity of these impacts, Beijing has promised a package of supportive measures for businesses, which has to some extent moderated an ongoing equities sell-off. Shanghai’s SSE Composite and the CSI 300 index covering Shanghai and Shenzhen blue-chips retreated for a fourth week, this time falling respectively by 1.8% and 0.9%.

The vast majority of listed biker stocks were negative on both weekly and monthly yardsticks, with seven of them more than 10% down on the latter basis.

Currency: yuanPriceWeekMonth
Qianjiang11.70-3.8%-15.7%
Zongshen5.86-3.9%-10.4%
Sundiro2.08-8%-10.7%
CETC (Jialing)13.91-3.3%-2.2%
Lifan4.70-3.9%-16.1%
Loncin4.43N/A-13.1%
Linhai9.19-5.9%+1%
Guangzhou Auto11.51-1%-10.9%
CFMoto110.72+1.3%-19.5%
Xinri E-Vehicle13.72-3.6%-6.3%

 

Currency: 

HK dollar

PriceWeekMonth
Jianshe5.63+7.4%-6.8%
Previous article
Next article
RELATED ARTICLES

Product News

Great start to the season for H&H Auctions

The National Motorcycle Museum’s auction partner, H&H Classics, had a strong first sale of the season at the end of March, with more than...