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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 22 March 2024. BDN financial editor Roger Willis reports.
USA — FED TO THE RESCUE
Shrugging off the previous week’s inflationary uptick, US Federal Reserve policymakers announced on Wednesday that they still expected to cut interest rates by three quarters of a percentage point this year. Wall Street promptly rallied and market indices were on track for their best conclusion since December.
Both blue-chip S&P 500 stocks and S&P’s MidCap 400 closed 2.3% up. The Dow Jones Industrial Average rose by 2% and NASDAQ’s tech-heavy Composite topped the pile with a 2.9% gain. MidCap powersports majors Harley-Davidson and Polaris were both beneficiaries, Harley having a particularly strong rolling month. And its LiveWire ePTW venture even managed to recover some recent lost ground. However, NASDAQ-listed e-biker stocks Ideanomics and Niu shared uninterrupted losing streaks.

Currency: dollar

Price

Week

Month

Harley-Davidson

43.51

+6.1%

+18.4%

Polaris Industries

95.65

+4.1%

+3.3%

Textron

95.85

+3.2%

+11.5%

Ideanomics

(Energica)

0.94

-10.5%

-6%

Niu Technologies

1.68

-5.6%

-1.8%

LiveWire

6.79

+11.7%

-27.9%
EUROPE — BETTER TIMES AHEAD?
Loosening monetary policy was also a hot topic on our side of the Atlantic too. Retreating UK inflation had the Bank of England hinting that interest rate cuts could be in play soon, boosting London’s FTSE 100. And Swiss National became the first major central bank to cut its headline rate. Even though the European Central Bank in Frankfurt has yet to move on rates, the key Xetra Dax index of its stock market neighbour rallied on mounting expectations, 1.5% up at close of play. A simillar positive reaction lifted Italian sentiment as well. Milan’s FTSE MIB index added 1.2%.
But there were mixed messages from Dax automotive listings. BMW Group shares declined on news of weak full-year 2023 profitability. Conversely, better annual data from various elements of the Volkswagen empire lifted its share price. In both cases, their respective motorcycling sidelines — BMW Motorrad and Ducati — published disappointing figures.

Currency: euro

Price

Week

Month

BMW

104.12

-1.5%

-2.4%

Volkswagen

137.60

+4.3%

-2.7%

Pierer Mobility

45.60

+0.2%

-4.6%

Piaggio Group

2.90

+2.1%

-8.8%
JAPAN — IN THE OPPOSITE DIRECTION
 
Bank of Japan governor Kazuo Ueda finally did the dastardly deed, ending a decade of ultra-loose monetary policy and eight years of sub-zero borrowing costs. An historic interest hike on Tuesday this week was nevertheless tentative, an overnight rate increase of zero to 0.1%. Effectively the first rise in Japanese borrowing costs for 17 years, at a time when other central banks are contemplating rate cuts, has the potential to fundamentally change the yen’s role in financial markets, according to economists, and may cause a volatility threat.
However, markets and investors were keenly receptive. The Nikkei 225 index covering blue-chip stocks traded on the Tokyo and Osaka exchanges, went ballistic, stacking on 5.6%. The performance of Japan’s “Big Four” biker stocks was typical, touching or easily exceeding the index average.

Currency: yen

Price
Week
Month
Honda
1921.5
+7.8%
+6.8%
Yamaha
1403.5
+5.5%
+1.5%
Suzuki
6821
+10.7%
+2.7%
Kawasaki
4965
+6.9%
+25.9%
INDIA — EVERYTHING UP FOR GRABS
Against a background of thickening political haze and an impeding General Election, Mumbai’s stock market indices, — the S&P BSE Sensex 30 and NSE Nifty 50 — moved marginally upwards in unison, each adding 0.3%. Most biker stocks, with the inexplicable exception of Norton parent TVS Motor, traded at more advantageous prices.

Currency: rupee

Price

Week

Month

Hero MotoCorp
4684.00
+2.2%
+3.6%
Bajaj Auto
8945.25
+7.1%
+6%
TVS Motor
2050.80
-0.8%
-3.1%
Eicher Motors
3988.40
+6.5%
+1.6%
Mahindra
1878.80
+4.4%
-2.7%
CHINA — BEGGARING BELIEF
Like a sudden breath of fresh air, data from China showed that its industrial production had unexpectedly jumped by 7% in January and February, the fastest rate of growth in two years. In normal circumstances, stock markets would have rallied upon receipt of such upbeat news. But they didn’t. Instead, Shanghai’s SSE Composite index declined slightly, by 0.2%. The blue-chip CSI 300 fared worse, 0.7% down. The reason? Nobody believes Chinese government statistics anymore.
For what it’s worth, just over half of our ten Chinese motorcycle manufacturer listings added some value.

Currency: yuan

Price
Week
Month
Qianjiang
13.07
-3.5%
+15.2%
Zongshen
7.22
+10.9%
+28.5%
Sundiro
3.04
+7.8%
+29.4%
CETC (Jialing)
12.75
-0.1%
+5.9%
Lifan
3.24
-1.8%
+2.5%
Loncin
6.31
+8%
+27.5%
Linhai
8.35
+4.2%
+7.9%
Guangzhou Auto
8.88
+0.1%
+2%
CFMoto
119.05
+6.1%
+25.4%
Xinri E-Vehicle
11.04
+2.5%
+13.6%
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