A snapshot of motorcycle and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 10 November 2023. BDN financial editor Roger Willis reports.
USA — SHOWTIME OVER
After New York listings had rallied for eight consecutive sessions, the US Federal Reserve stepped in to remind investors that it had no plans to reduce high interest rates in the foreseeable future. Poor demand during an auction of US government debt in the bond markets mid-week helped to reintroduce a measure of gloom too. So a rampant equities sell-off set in on Thursday, ameliorated by a modest rebound in some sectors on Friday.
Most Wall Street market indices hung onto acceptable weekly gains, though. Blue-chip S&P 500 stocks closed 1.3% higher and the Dow Jones Industrial Average was 0.7% up. NASDAQ Composite techies held their ground best with 2.4% growth. Only S&P’s MidCap 400 disappointed, falling by 1.6%.
That was a reflection of Q3 results grief among consumer-facing MidCap enterprises — not least leading powersports players. Most blatantly, Harley-Davidson and Indian Motorcycle parent Polaris started to bleed value once again, as did all the electrified PTW purveyors.
| Currency: dollar | Price | Week | Month |
| Harley-Davidson | 26.86 | -7.1% | -9.8% |
| Polaris Industries | 87.66 | -5.4% | -9.7% |
| Textron | 76.00 | -2% | -2.9% |
| Ideanomics (Energica) | 1.99 | -21% | -16% |
| Niu Technologies | 2.17 | -10% | -6.1% |
| LiveWire | 9.20 | -4.8% | +19.2% |
EUROPE — TEMPERED MOOD SWING
European consumer stocks also took a beating on the back of various weaker Q3 performances. Most continental market indices were already trading lower, because ECB president Christine Lagarde had warned that interest rate cuts were unlikely within “the next couple of quarters”, despite very good news on the eurozone’s inflation front.
In Germany, Frankfurt’s Xetra Dax clung onto only a distinctly marginal 0.3% weekly rise and FTSE MIB in Milan ended 0.6% down. The Wiener Börse ATX in Austria was positive to the tune of just 0.5%. All four biker-related listings across Europe were losers.
| Currency: euro | Price | Week | Month |
| BMW | 91.18 | -1.9% | -6.7% |
| Volkswagen | 114.80 | -2.1% | -5.5% |
| Pierer Mobility | 56.00 | -1.1% | -9.4% |
| Piaggio Group | 2.64 | -1.5% | -9.3% |
JAPAN — A TALE OF TWO DIRECTIONS
Japanese business confidence revolved around the yen sinking closer to a level where analysts anticipate BoJ central bankers will intervene to support the currency. Overall, the Nikkei 225 stock index spanning Tokyo and Osaka reflected associated sentiment with a sound 1.9% weekly gain.
Quarterly corporate reports from Honda, Yamaha and Kawasaki weren’t altogether well-received, on the basis that all three revealed pressure on bike sales in China and some South-East Asian countries, owing to slow economic recoveries in these markets. A “morning after” knee-jerk reaction, following their results releases, briefly wiped 7.2% off Honda’s share value, 5.8% off Yamaha and 9.7% off Kawasaki. But all three rebounded within 48 hours.
Suzuki was far less exposed, because both its Asian motorcycle and Maruti Suzuki microcar sales are predominantly dependent on India, and were generally positive, so it made a solid advance without any flip-flop.
| Currency: yen | Price | Week | Month |
| Honda | 1586 | +0.8% | -5.7% |
| Yamaha | 3709 | -0.1% | -4.5% |
| Suzuki | 6434 | +8.3% | +8% |
| Kawasaki | 3266 | -1.1% | -11.2% |
INDIA — CELEBRATING LIGHT FROM DARKNESS
Mumbai’s S&P BSE Sensex stock index made a second consecutive minor weekly gain, this time of 0.8%, as investors forgot their troubles and went into peak Diwali festival mode. Every major motorcycle manufacturer boasted share price rises of varying degrees, in what amounted to a suddenly optimistic silly season.
Hero’s hubristic announcement of an entry into the European market, at EICMA in Milan, didn’t come early enough to thoroughly massage its share price.
| Currency: rupee | Price | Week | Month |
| Hero MotoCorp | 3105.20 | +0.5% | +0.2% |
| Bajaj Auto | 5392.05 | +0.4% | +6.7% |
| TVS Motor | 1631.95 | +2.1% | +1.9% |
| Eicher Motors | 3540.75 | +3.3% | +1.9% |
| Mahindra | 1524.10 | +3.8% | -2.5% |
CHINA — SLIM PICKINGS
Chinese market indices continued to make very slight weekly advances. This time around, Shanghai’s SSE Composite rose by just 0.3% and the blue-chip CSI 300 covering both Shanghai and Shenzhen exchanges added an almost non-existent 0.1%. Out of ten listed Chinese motorcycle manufacturers, only two accrued value in the past five sessions.
Latest recruit to helping dig China out of its massive economic hole is US Treasury secretary Janet Yellen, who has just spent two days in Beijing teaching Chinese vice-premier He Lifeng how to operate the prerequisite metaphorical shovel. He Lifeng assumed responsibility for his country’s economy in March, following appointment to the vice-premiership by glorious leader Xi Jinping. He’s not doing to well so far.
| Currency: yuan | Price | Week | Month |
| Qianjiang | 13.40 | -0.6% | -4.6% |
| Zongshen | 6.41 | -0.6% | -6.4% |
| Sundiro | 2.69 | +5.5% | +14.5% |
| CETC (Jialing) | 15.00 | +5.9% | +1.7% |
| Lifan | 3.75 | -1.6% | +1.4% |
| Loncin | 5.31 | -4.3% | -8.3% |
| Linhai | 9.56 | -1% | +6.3% |
| Guangzhou Auto | 9.89 | -2.1% | -4.1% |
| CFMoto | 99.12 | -2.6% | -26.7% |
| Xinri E-Vehicle | 13.86 | -1.1% | +0.2% |