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 6 October 2023. BDN financial editor Roger Willis reports.

USA — TOO HOT TO TROT

Another messy week with intermittent equities and US Treasury bond sell-offs in New York as fresh evidence mounted of the American economy still over-heating. Although market indices bounced back by Friday, their progress wasn’t firm across the board. Best performers were S&P 500 blue-chips, which finished on an average 0.5% gain and NASDAQ Composite tech-dominated stocks adding 1.6%. However, the Dow Jones Industrial Average retreated slightly, closing 0.3% down. And S&P’s MidCap 400 fell much more sharply by 1.9%.

Biker listings were prominent among big MidCap losers. Harley-Davidson’s share price plunged, on the cusp of entering recently uncharted 20-buck ignominy. Indian Motorcycle parent Polaris also took a hammering, as it sank below the 100-dollar mark. Electric PTW representation on NASDAQ was also distinctly unpopular with investors. Ideanomics, which has Italian e-biker brand Energica in its private-equity portfolio, and Chinese delivery scooter specialist Niu were both punished. The only light relief came from Harley’s NYSE-listed LiveWire spin-off, which recovered most of its severe loss in the previous week.

EUROPE — NOT CONVINCED

The rebound on Wall Street did spread to Europe. But major stock indices nevertheless ended the week in negative territory, driven down by a broad sell-off in government bonds. The root cause of that was investor concerns about US interest rates remaining high until America’s economy showed signs of slowing.

Frankfurt’s Xetra Dax finished 1% down, with Teutonic automotives sharing sideline motorcycling interests on the losing streak. The Wiener Börse ATX in Austria dropped by 1.5% and KTM parent Pierer followed suit. Italy’s FTSE MIB in Milan retreated by 1.5% too, while lack of confidence in Piaggio’s new management was unabated.

JAPAN — MIND THE GAP

Tokyo’s Nikkei 225 market index declined for a third consecutive week, this time falling by 2.7%, as the Japanese government struggled to decide how to support its currency. Once again, such inadequacies were reflected in much harsher investor reaction for exporters — inevitably including all four indigenous motorcycle manufacturers.

INDIA — FORLORN HOPE

With the annual Diwali Festival consumption frenzy barely more than a month away, and dire predictions of an under-spend in the offing, Mumbai’s S&P BSE Sensex market index hardly got off the floor, rising by only 0.3%. Investors have obviously concluded that indigenous Indian motorcycle manufacturers are likely to suffer accordingly and most of their share prices fell. The exception was Royal Enfield parent Eicher, which has timed the launch of a heavily revised 350 Bullet model perfectly to take maximum advantage of Diwali’s low-hanging fruit, even if it might be a lot thinner on the trees this year.

CHINA — HOLIDAY BECKONS

After a “Mid-Autumn Festival” starter day off on the previous Friday, the whole of China then ground to a halt for its annual “Golden Week” vacation bash. Stock exchanges in Shanghai and Shenzhen were shuttered for the duration, as were virtually all businesses. Normal service will resume shortly.