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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 8 December 2023. BDN financial editor Roger Willis reports.

USA — AND RELAX…

November’s broad-based Wall Street stock rally took a pause moving into December, as investors played a “will they, won’t they” guessing game on likely timing for interest rate cuts by the US Federal Reserve. Current favourite bet is on next May.

The circumspect trading this engendered, characterised by modest swings between winners and losers, translated into lethargy for market indices. Both the blue-chip S&P 500 and S&P’s MidCap 400 finished on trivial 0.2% weekly gains. The Dow Jones Industrial Average closed dead flat. Only the tech-heavy NASDAQ Composite showed signs of life, 0.7% up by knocking-off time on Friday.

Among NYSE-listed biker stocks, Harley-Davidson and Polaris topped the pile. Harley’s electric spin-off LiveWire also made a minor advance. Textron went the other way, as did all the NASDAQ electronic exchange chancers.

Currency: dollarPriceWeekMonth
Harley-Davidson32.10+2.5%+19.5%
Polaris Industries89.86+2.8%+2.5%
Textron75.93-2.5%-0.1%
Ideanomics

(Energica)

1.72-3.9%-13.6%
Niu Technologies2.16-6.1%-0.5%
LiveWire10.94+0.6%+18.9%

 

EUROPE — ON A PROMISE

The Chinese government’s latest pledge to support its economic recovery and growth boosted European luxury stocks — including premium automotive players — dramatically. The Europe-wide Stoxx 600 index climbed to a 22-month high and key national indices followed. Germany’s Xetra Dax in Frankfurt added 2.2% and the Borsa Italiana FTSE MIB in Milan closed 1.6% up. Across these markets, BMW, Ducati parent Volkswagen and Piaggio all made substantial five-session gains.

But Austria’s Wiener Börse ATX only put on a febrile 0.2%, as the Austrian share price of KTM parent Pierer Mobility plunged by a double-digit percentage. Pierer had just announced the disposal of its loss-making Raymon and Felt pedal bicycle businesses, as well as a corporate strategy henceforth focusing purely on motorcycle and e-bike activities — with an accent on production in Asia.

Currency: euroPriceWeekMonth
BMW100.92+4.9%+10.7%
Volkswagen124.60+5.1%+8.5%
Pierer Mobility52.40-14.4%-6.4%
Piaggio Group2.83+4.4%+7.2%

 

JAPAN — BAD NEWS WEEK

A revelation that Japanese GDP in the third quarter of 2023 fell by 2.9%, much faster than initially estimated, severely rattling hawkish Bank of Japan policymaker cages. Investors in Tokyo and Osaka began running for the cover of safe havens. Their Nikkei 225 market index plunged by 3.4% over the week and biker stocks, afflicted by such weakening domestic consumption, all took a hammering.

Currency: yenPriceWeekMonth
Honda1458-4.7%-8.1%
Yamaha3734-3.2%+0.7%
Suzuki5744-5.2%-10.7%
Kawasaki3052-8.8%-6.6%

 

INDIA — THE ONLY WAY IS UPBEAT

Indian investors continued to wallow in hubris, driving Mumbai’s headline S&P BSE Sensex market index even higher, this time with a 3.5% weekly rise. But motorcycle manufacturing gains were much weaker, with both market leader Hero and TVS actually turning negative. Royal Enfield parent Eicher prospered regardless, though, propelled by new model presentations coming thick and fast.

Currency: rupeePriceWeekMonth
Hero MotoCorp3715.75-1.2%+19.7%
Bajaj Auto6075.70+0.5%+12.6%
TVS Motor1902.70-0.4%+16.6%
Eicher Motors4055.00+4.2%+14.5%
Mahindra1668.55+2.6%+9.5%

 

CHINA — MORE SWINGS AND ROUNDABOUTS

The latest Beijing government undertakings to deliver massive doses of economic stimulus may well have been applauded by Europeans. But they were met with deaf ears and scepticism on home turf in China.

Equities declined after contradictory statistical reports. Data showed stronger than expected export growth, breaking six consecutive months of contraction, but also featured weaker imports, indicating persistently soft demand.

So market indices declined without mercy. Shanghai’s all-share SSE Composite fell again, this time by 2%, and the blue-chip CSI 300 was a firmer 2.4% down. With the solitary exception of Yamaha JV partner Linhai, added value was utterly absent for other listed motorcycle manufacturing enterprises.

Currency: yuanPriceWeekMonth
Qianjiang12.69-5.3%-5.3%
Zongshen6.56-3.4%+2.3%
Sundiro2.82N/A+4.8%
CETC (Jialing)13.79-8.6%-8.1%
Lifan3.85-8.8%+2.7%
Loncin5.35-4.8%+0.8%
Linhai10.26+0.5%+7.3%
Guangzhou Auto9.31-5.5%-5.9%
CFMoto86.77-4.7%-12.5%
Xinri E-Vehicle13.40-5.2%-3.3%

 

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