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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 4 March 2022. BDN financial editor Roger Willis reports.

USA — DON’T MENTION THE WAR

Although the past week was rocky, to say the least, US investors managed to side-step some of the really harsh equity slumps seen elsewhere by focusing on American employment data for February. Firms had created 678,000 new jobs during the month, a much higher figure than anticipated.

Apart from this glimmer of good news, increasingly gory battlefield events in Ukraine ruled the roost and market indices were consistently negative. Wall Street’s blue-chip S&P 500 and the Dow Jones Industrial Average sank in unison by 1.3%. S&P’s MidCap 400 finished 1.7% down.

Among powersports stocks, Polaris and Textron got off lightest, perhaps because they both have lucrative US Government defence contracts. The former supplies off-road vehicles of one sort or another to the US Army and Marine Corps. The latter’s Bell subsidiary has a long history of making combat helicopters and, more recently, military twin tilt-rotor VTOL aircraft.

HOGOMETER

Harley-Davidson’s share price reflected the febrile and erratic market mood, as Putin ramped up his increasingly genocidal war on the Ukrainian populace. An uptick of 1.1% on Monday was followed by a 3.1% loss on Tuesday, after Harley admitted that it had abandoned business in Russia and sales to its state-sponsored outlaw bikers. Wednesday and Thursday delivered respective 3.3% and 0.2% recoveries, peaking at $41.39. But then Russian heavy artillery gratuitously shelled a Ukrainian nuclear power plant (Europe’s largest!), provoking fears of a Chernobyl-style meltdown, and Harley shares plummeted by 5.9% on Friday.

Currency: dollarPriceWeekMonth
Harley-Davidson38.95-4.6%+9%
Polaris Industries117.76-1.6%+2.3%
Textron71.23-0.3%+5.9%

EUROPE — FREE FALL ON THE FRONT LINE

Ukraine’s now-dysfunctional role as a hub for just-in-time automotive components manufacture — most specifically vehicle wiring harnesses — came to the fore. Assembly plants all over Europe ground to a halt as their supply chains collapsed. Faced with such an extreme economic impact from the Russian invasion, automotive industry share prices plunged, leading a panic sell-off that spread like wildfire across other sectors.

Market indices were savaged. As Volkswagen and BMW shares fell through the floor in Germany, Frankfurt’s Xetra Dax yardstick dived overall by 10.1%, its biggest negative correction since the beginning of pandemic lockdowns two years ago. In Italy, suffering from equally severe parts shortages, the FTSE MIB index in Milan dropped further, recording a 12.8% five-session loss. Piaggio, which should have been benefiting from excellent annual corporate results released during the week, took a spanking by investors instead.

Currency: euroPriceWeekMonth
BMW73.10-17%-18.5%
Volkswagen197.00-18.3%-20%
Pierer Mobility78.80-2.2%-11.3%
Piaggio Group2.45-8.2%-12.5%
Energica3.15+0.3%+0.6%

JAPAN — COLLATERAL DAMAGE

Tokyo’s Nikkei 225 index declined for a third successive week, falling by 1.9%. Again, supply-chain issues were to blame as both Toyota and Honda were forced to suspend assembly operations in Russia. The former is actually the biggest automotive manufacturer on Russian soil.

Kawasaki escaped the indignities inflicted by investors on other Japanese compatriot companies with motorcycling presences as well as car connections (Yamaha produces engines for Toyota) because it has no significant exposure to Russia.

Currency: yenPriceWeekMonth
Honda3215-9%-6.7%
Yamaha2440-3.6%-13.2%
Suzuki4199-9.3%-15.9%
Kawasaki2116+2.8%N/A

INDIA — ENERGY COSTS HIT HOME

Soaring global energy prices on the back of Russian aggression have begun to crank up Indian factory-gate inflation, compounding the problems of this vast country’s already battered economy.

Mumbai’s BSE Sensex 30 market index fell again, this time by 2.7%. The plight of all five leading motorcycle manufacturers worsened, as their value shrivelled.

Currency: rupeePriceWeekMonth
Hero MotoCorp2311.30-9.7%-15.1%
Bajaj Auto3242.10-7.6%-9.1%
TVS Motor554.75-12.2%-15%
Eicher Motors2339.25-11%-11.1%
Mahindra732.30-9.3%-13%

CHINA — WATCHING FROM A SAFE DISTANCE

Chinese president Xi Jinping continued to sit on the fence in regard to erstwhile chum Vladimir Putin and is clearly outside his comfort zone with the level of ultraviolence now evident. (China prefers to do its dastardly deeds concealed from close international observation.)

Shanghai’s SSE Composite and the CSI 300 index covering blue-chips on the Shanghai and Shenzhen exchanges retreated for a second successive week, respectively 0.1% and 1.7% lower. Eight of the eleven listed Chinese motorcycle producers lost value.

Currency: yuanPriceWeekMonth
Qianjiang13.26-3.4%+0.5%
Zongshen6.52-0.9%+2%
Sundiro2.31-5.5%-0.4%
CETC (Jialing)14.50+0.7%+7.4%
Lifan5.17-4.8%-6%
Loncin4.70-2.7%-3.7%
Linhai9.17+1.4%+13.6%
Guangzhou Auto12.23-5.6%-6.6%
CFMoto116.93-10.2%-17%
Xinri E-Vehicle14.67+0.1%N/A

 

Currency: 

HK dollar

PriceWeekMonth
Jianshe5.63-4.7%-2.8%
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