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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 19 April 2024. BDN financial editor Roger Willis reports.

USA — LOSING STREAK

Wall Street suffered its longest losing streak since October 2022 in the past week. Fading hopes of rapid interest rate cuts from the US Federal Reserve, given a second monthly rise in American consumer price inflation, and ongoing tensions in the Middle East were primarily responsible.

Among market indices, the blue-chip S&P 500 and NASDAQ Composite took most punishment, with respective losses of 3% and 5.5%. S&P’s MidCap 400 fell by 2.2%. Within that, leading US biker stock Harley-Davison has incurred a monthly double-digit percentage loss and analysts predicted significant revenue and earnings declines in its forthcoming Q1 results statement due on 25 April.

Dodging fate of other indices, marginal 0.1% weekly positivity for the Dow Jones Industrial Average seemed irrelevant.

Currency: dollarPriceWeekMonth
Harley-Davidson38.07-4.1%-12.5%
Polaris Industries87.39-3.5%-8.6%
Textron93.31-0.7%-2.6%
Ideanomics

(Energica)

0.83-6.7%-11.7%
Niu Technologies1.92-12.7%+14.3%
LiveWire7.23-1.5%+6.5%

 

EUROPE — KNEE JERK REACTIONS

Following the European Central Bank’s decision to match US cues by keeping by interest rates on hold, and then prompt Israeli missile-strike retaliation on Iran — responding to the Iranian attack on Israel — eurozone stock markets got a bad case of the jitters and share prices initially plunged. However, news that the US Congress was about to pass a fresh package of military aid to Ukraine pivoted sentiment towards recovery.

Therefore most losses were pared before close of play on Friday. However, Germany’s automotive-heavy Xetra Dax index in Frankfurt still finished 1.1% in arrears and the Wiener Börse ATX in Austria ended 0.5% down. Despite the late bounce-back rewarding Milan’s FTSE MIB with a 0.5% gain, all four listings relating to the motorcycle industry fell.

Currency: euroPriceWeekMonth
BMW105.85-3.3%+1.7%
Volkswagen141.30-3.3%+2.7%
Pierer Mobility40.60-4.2%-11%
Piaggio Group2.80-1.1%-3.4%

 

JAPAN — MOUNTING FEAR FACTOR

Heightening tension in the Middle East also triggered a steep stock sell-off across Asia. Tokyo and Osaka’s Nikkei 225 index dived to close 6.2% lower as Japanese investors ran for cover. Among biker stocks, only Kawasaki escaped a spanking. The KHI conglomerate probably still has defence interests and may have opened a kamikaze drone order book, now there’s no need for short-lived pilots.

Currency: yenPriceWeekMonth
Honda1747-7%-9.1%
Yamaha1379.5-2.6%-1.7%
Suzuki1711.5-6.9%+0.3%
Kawasaki4799+0.5%-3.3%

 

INDIA — VOTE EARLY, VOTE OFTEN?

Quite where India now stands is now entirely up for grabs, as the polls opened on its general election and more than a billion voters began to shuffle through booths to make their marks. Equities trading almost immediately became tentative and market indices retreated. The S&P BSE Sensex 30 and NSE Nifty 50 respectively sank to close 1.6% and 1.7% down. Among biker stocks, only Royal Enfield parent Eicher and BSA parent Mahindra stayed shiny side up.

Currency: rupeePriceWeekMonth
Hero MotoCorp4213.70-5.1%-10%
Bajaj Auto8804.50-2.9%-1.6%
TVS Motor1899.05-7.2%-7.4%
Eicher Motors4344.15+1%+8.9%
Mahindra2082.90+0.6%+10.9%

 

CHINA — LATEST WOEFUL ECONOMIC NEWS

Dealogic data on China’s equity capital markets has revealed that activity has slumped to a 20-year low, on both mainland exchanges and in Hong Kong. Chinese companies have raised just $6.4bn in mainland initial public offers, follow-on and convertible share offerings so far this year — the lowest level on record.

“In terms of global investor interest in China, it’s definitely the worst I’ve seen in my career,” commented Wang Qi, chief investment officer of Hong Kong’s UOB KayHian brokerage, upon release of Dealogic analysis.

Local punters simply ignored this sobering revelation and market indices added value. Shanghai’s SSE Composite rose by 1.5% and the blue-chip CSI 300 finished 1.9% up. As usual, biker stocks were all over the place, without rhyme or reason.

Currency: yuanPriceWeekMonth
Qianjiang15.80+19.7%+20.9%
Zongshen10.30+16.4%+42.7%
Sundiro2.94-7%-3.3%
CETC (Jialing)11.26-4.1%-11.7%
Lifan3.07-2.8%-5.2%
Loncin6.44+0.3%+2.1%
Linhai7.35-9.3%-12%
Guangzhou Auto8.69-1.1%-2.1%
CFMoto137.70+1.3%+15.7%
Xinri E-Vehicle10.83-8.5%-1.9%

 

 

 

 

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