A snapshot of motorcycle and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 19 May 2023. BDN financial editor Roger Willis reports.
USA — RUNNING OUT OF MONEY
New York markets swerved around on a daily basis as Republican and Democrat policymakers squabbled over an imminent risk of reaching the US Treasury debt ceiling and funds for Federal salaries hitting tilt. Stop-start negotiations between President Biden and his opposition in Congress sequenced a series of stock rallies and slumps throughout the week.
By Friday, share indices were on a downward curve again. But without exception, they all managed to close on various degrees of positivity. The blue-chip S&P 500 and tech-heavy NASDAQ Composite turned in the strongest performances, respectively finishing 1.6% and 3% up. The Dow Jones Industrial Average suffered most, in black ink by a mere 0.4%. S&P’s MidCap 400 added 1%.
Biker-related equities were generally resilient, apart from Harley-Davidson and its electrified spin-off LiveWire, both of which shredded value. Harley’s rolling month of share price decline has now stretched to a double-digit percentage loss — and the company is in danger of being relegated to 20-buck ticker territory.
| Currency: dollar | Price | Week | Month |
| Harley-Davidson | 32.49 | -3.5% | -13.6% |
| Polaris Industries | 105.78 | +1.6% | -3.1% |
| Textron | 64.47 | +1.9% | -5.1% |
| Ideanomics (Energica) | 0.046 | +15% | +15% |
| Niu Technologies | 4.07 | +21.5% | +9.7% |
| LiveWire | 6.99 | -1.8% | -4.2% |
EUROPE — BAD IS GOOD
Germany’s Zew indicator, a metric of economic sentiment for the eurozone’s biggest industrial player, plummeted in the first half of May. But, paradoxically, investors decided bad news for the economy was good news for interest rates, in so far as it will discourage the European Central Bank from increasing them. So after an initial stutter, Frankfurt’s Xetra Dax Performance yardstick had stacked on 2.3% in value by close of play on Friday.
Italy had doubts about such topsy-turvy reasoning and traders were more tentative. However, the FTSE MIB index in Milan still managed to rise by 0.7%. Motorcycle-related shares at both ends of the eurozone spectrum were all positive, with BMW and Piaggio posting the best gains.
| Currency: euro | Price | Week | Month |
| BMW | 103.56 | +4.3% | +2.9% |
| Volkswagen | 149.35 | +0.9% | -0.9% |
| Pierer Mobility | 76.40 | +1.9% | -5.9% |
| Piaggio Group | 3.74 | +3.6% | -5.8% |
JAPAN — SOMETHING TO CELEBRATE
Japanese gross domestic product grew twice as fast in the first quarter of this year than analysts had predicted, as Asia’s most advanced economy finally escaped a post-Covid technical recession. Equities briefly surged to a 33-year high before Tokyo’s Nikkei 225 index eventually settled on a still spectacular 4.8% weekly gain. The inconvenient fact that recovery was over-stated, with an actual fall in exports and weaker manufacturing data, didn’t trouble investors too much.
Among motorcycle producers, Honda was by far the biggest beneficiary of stock market euphoria. Yamaha, which had undershot Q1 estimates, and Suzuki weren’t invited to the party at all.
| Currency: yen | Price | Week | Month |
| Honda | 3906 | +4.4% | +12.2% |
| Yamaha | 3385 | -2.3% | -1.2% |
| Suzuki | 4682 | -3.4% | +1.9% |
| Kawasaki | 2827 | +2.7% | -3% |
INDIA — FICKLE TRADING
Mumbai’s BSE Sensex market average had to cope with a hangover from vaguely justified mid-May excitement, sinking by 0.5%. The majority of motorcycling majors turned negative as this burst of casino mentality ebbed. A loss for Royal Enfield parent Eicher was perhaps most surprising. During the previous week, Eicher’s share price had gone ballistic, leaping more than 8% up, after the company announced it was ploughing a fresh £97m investment into the already booming bike business.
| Currency: rupee | Price | Week | Month |
| Hero MotoCorp | 2713.00 | +4.1% | +10.3% |
| Bajaj Auto | 4483.20 | -1.2% | +4.1% |
| TVS Motor | 1240.15 | +0.2% | +13.5% |
| Eicher Motors | 3570.90 | -1.5% | +11.6% |
| Mahindra | 1260.40 | -1.2% | +3.9% |
CHINA — HARD TIMES FOR EXPORTERS
Chinese investor sentiment deteriorated as evidence from both the G7 summit in Japan and separately expressed American sabre-rattled underlined there would be no easy ride for China’s export-led economic recovery. Indeed, quite the opposite as Western nations seek to rein in Chinese presidential despot Xi Jinping’s increasingly aggressive nationalist stance.
Shanghai’s all-share SSE Composite index put on just 0.3% and the blue-chip CSI 300 spanning both Shanghai and Shenzhen exchanges managed only 0.2% growth. Share prices for half of the eleven listed Chinese motorcycle manufacturers went backwards.
| Currency: yuan | Price | Week | Month |
| Qianjiang | 19.45 | +1.4% | -7.8% |
| Zongshen | 6.71 | +0.9% | +7.5% |
| Sundiro | 2.29 | N/A | +3.6% |
| CETC (Jialing) | 14.33 | +2.1% | -0.6% |
| Lifan | 3.48 | -2.5% | +2.4% |
| Loncin | 4.64 | -2.1% | -3.5% |
| Linhai | 8.79 | +1.4% | +9.9% |
| Guangzhou Auto | 10.35 | -2.5% | -2.1% |
| CFMoto | 135.26 | -0.3% | -4.4% |
| Xinri E-Vehicle | 17.92 | -0.2% | -3% |
| Currency:Â HK dollar | Price | Week | Month |
| Jianshe | 4.62 | +1.3% | -2.1% |