SHARE PRICES AND MARKET ANALYSIS

A snapshot of motorcycle and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 21 July 2023. BDN financial editor Roger Willis reports.

USA — QUARTERLY WOES

With inflation parked safely on the back-burner, US investor focus switched to quarterly corporate earnings reports — specifically, some rather inadequate performances by large-cap technology leviathans including Tesla. These concerns quickly translated into a sharp equities sell-off, both in New York and contagion spreading to Europe. As a result, Wall Street market indices veered all over the place.

The tech-heavy NASDAQ Composite closed in negativity, on a 0.6% loss, even though the sector had rallied on Friday. And there was a big gap between blue-chip S&P 500 and Dow Jones Industrial Average weekly conclusions. The former finished with a weak 0.7% gain while the latter rose by a much healthier 2.1%.

S&P’s MidCap 400, where petrolhead powersports purveyors lurk, split the difference, rising by 1.2%. Harley-Davidson and Polaris both beat this average. But Harley’s NYSE-listed electric motorcycle spin-off LiveWire took its cue from the tech rout, suffering a substantial slump. Electric bikers Ideanomics and Niu, both NASDAQ adherents, were also spanked.

EUROPE — NARROW ADVANTAGE

Leading eurozone markets mounted a swift recovery from the US-inspired midweek sell-off, but not by much. Their primary boost came from European energy stocks moving higher, thanks to rising crude oil prices. Germany’s Xetra Dax Performance yardstick in Frankfurt snatched slim 0.4% positivity, while the Borsa Italiana FTSE MIB in Milan did a bit better, 0.7% up. Among motorcycle related equities, only BMW stayed out of the red ink.

JAPAN — BETTING ON BIKERS

Earnings forecasts figured large in Tokyo too, where pessimists pushed the Nikkei 225 index 0.3% down by close of play. However, the four big Japanese bike manufacturers shortly to reveal quarterly results were obviously seen as safe bets, all stacking on satisfactory gains.

INDIA — NAME GAME

Although Mumbai’s BSE Sensex 30 market index managed a modest 0.9% improvement, indigenous motorcycle production investments weren’t favourite fruity flavours during the past week — almost all of the five majors incurring losses. The sole exception was Bajaj Auto, riding high on the launch of its Triumph Motorcycles relationship. Domestic advance orders for the British-badged 400cc bikes Bajaj is about to start churning out have now reached more than 20,000 in just a fortnight.

CHINA — GLOOM RESUMES

Chinese government stimulus measures, to boost its ailing economy, are increasingly seen as underwhelming relative to expectations. Some analysts specialising in China-watching are now fielding the spectre of zero economic growth this year unless Beijing really pulls its finger out.

Against such a background, stock-trading confidence has just melted away again. Both key market indices turned abruptly negative in the past week. Shanghai’s all-share SSE Composite sank by 2.2% and the blue-chip CSI 300 finished 2% down. Among China’s eleven listed motorcycle producers, only one added value — Benelli parent Qianjiang.