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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 31 May 2024. BDN financial editor Roger Willis reports.

USA — GROWTH FAULT LINES
Scratchy US economic growth data showed that America’s GDP had been much lower than anticipted in the first quarter of 2024. And while residual excessive inflation figures hadn’t become worse, they hadn’t improved much either. An inevitable knee-jerk response from traders saw most New York indices slump.

Blue-chip S&P 500 stocks closed 0.5% down and the Dow Jones Industrial Average posted a weekly 1% decline. Tech shares on NASDAQ’s Composite also became less attractive, finishing 1.1% in arrears. S&P’s MidCap 400 offered a measure of light relief, on just a 0.2% loss. MidCap biker stocks generally fared better than that as the peak powersports sales season swung into gear.

Currency: dollarPriceWeekMonth
Harley-Davidson35.88+1.9%+2.4%
Polaris Industries83.60+1.5%-0.4%
Textron87.61-1.2%+2.3%
Ideanomics

(Energica)

1.00+5.3%+1%
Niu Technologies2.05+2%-10.5%
LiveWire6.49-2.1%-5.8%


EUROPE — DOUBLE JEOPARDY
Higher than expected eurozone inflation figures wiped any smile off the European Central Bank’s face, heightening the ECB’s reluctance to cut interest rates. That engendered a degree of sell-off across leading market indices. Frankfurt’s Xetra Dax finished 1.1% in arrears, while the FTSE MIB in Milan got away with a marginal 0.1% retreat. The Wiener Börse in Austria fare worse, losing 1.9%.

Another factor impinging on Teutonic automotive stocks was China’s reaction to the threat of punitive tariffs on cheap Chinese electric vehicle exports into EU countries. Beijing has now rattled the sabre of retaliatory tariffs on luxury European car brands made and sold on its home turf. Prominent victims will be BMW and Volkswagen Group’s premium Audi products. Their share prices were punished accordingly.

Currency: euroPriceWeekMonth
BMW92.88N/A-9.4%
Volkswagen131.10-6%-1.6%
Pierer Mobility37.80-1%+2.7%
Piaggio Group2.83+1.8%+2.2%


JAPAN — WRONG MOVES?
The Bank of Japan has apparently spent a record equivalent of $62bn in April and May, to boost the faltering yen. But the currency has resumed its depreciation slide towards a 34-year low point. Tokyo’s struggle to stabilise the yen’s exchange valuation with interventions is having only a fleeting impact and the BoJ is under increasing pressure to raise interest rates at a faster pace in parallel — even though the Japanese economy remains weak due to sluggish consumption.

However, the impact on equities is still moderate. Tokyo and Osaka’s key Nikkei 225 index remained negative for a second consecutive week, but only by 0.4%. Biker-related brands were unscathed, adding or (in Suzuki’s case) holding value.

Currency: yenPriceWeekMonth
Honda1769.5+2%-0.8%
Yamaha1532.5+2.5%+7.4%
Suzuki1863.5N/A+3.2%
Kawasaki5970+3.1%+23%


INDIA — WAITING GAME
Mumbai’s two key market indices turned sharply negative in unison, both S&P’s BSE Sensex 30 and the NSE Nifty 50 posting 1.9% weekly losses, as investor nerves grow increasingly ragged in the face of approaching Indian General Election results.

Among motorcycle manufacturers, the share price of market leader Hero MotoCorp flatlined. Only Bajaj Auto bucked a losing trend for the rest.

Currency: rupeePriceWeekMonth
Hero MotoCorp5119.60N/A+12.5%
Bajaj Auto9084.75+1.5%-0.3%
TVS Motor2179.25-2.6%+6.2%
Eicher Motors4733.45-3%+2.9%
Mahindra2506.25-2.8%+14.3%


CHINA — RESIDENTIAL RUIN
Latest expression of China’s ongoing economic woes came from a dramatic sell-off for stocks in the many loss-making Chinese property development companies. Even though better monthly manufacturing and export data had emerged in the past week, this property crash flipped market indices into negativity.

Blue-chip CSI 300 stocks traded in both Shanghai and Shenzhen sank by 0.6%. Shanghai’s SSE Composite ended with a fairly minimal 0.1% retreat. Biker listings were mixed.

Currency: yuanPriceWeekMonth
Qianjiang17.90-5.6%+3.8%
Zongshen11.61-0.1%-1%
Sundiro3.08+2%-1.3%
CETC (Jialing)11.73+6.3%-7.2%
Lifan3.08-2.2%-4%
Loncin7.32+4.3%+12.7%
Linhai7.81N/A-0.6%
Guangzhou Auto8.42-0.4%-4.1%
CFMoto146.17-6.2%+4.5%
Xinri E-Vehicle12.37+7%+15.6%

 

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