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Share prices

19/10/2020

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 16 October 2020. BDN financial editor Roger Willis reports.

USA — VOTE EARLY, VOTE OFTEN?

With only some upbeat quarterly earnings statements to lighten the mood fractionally, American sentiment was engulfed by repeated negative waves — grim US jobs data, rampant Covid spread, the collapse of economic stimulus prospects in advance of imminent presidential and congressional elections and, of course, the bitterly contested elections in their own right.                     

A three-session losing streak mid-week meant key market indices barely got off the floor. The blue-chip S&P 500 and Dow Jones Industrial Average finished with irrelevant respective gains of just 0.2% and 0.1%. S&P’s MidCap 400 index was dead flat at close of play. Among powersport stocks, only Harley stayed shiny side up, and then not convincingly (see below).               

HOG-OMETER — WAITING GAME

Harley-Davidson’s share price lacked energy or consistent direction. Our Hog-ometer flicked back from the previous Friday’s sharp loss with a partial recovery of 2.3% on Monday. But then promptly dropped by 1.6% on Tuesday. Retreat from $28 territory followed on Wednesday, a further 1% down to its weekly low point of $27.92. However, Thursday saw a 1.7% improvement and Friday added a fairly gestural 0.6% rise. The sum total of a 2% weekly increase was hardly stirring.                      

Harley Q3 financial results, surrounded by much speculation, are now due on 27 October, exactly one week before the official presidential election date of 3 November. Quite how investors will respond to either event is anybody’s guess.                

Currency: dollar

Price

Week

Month

Harley-Davidson

28.57

+2%

+13.2%

Polaris Industries

96.05

-3.8%

+7.2%

Textron

36.27

-1.3%

-3.7%

EUROPE — COULD’VE BEEN WORSE 

Hit by growing pandemic fears, the previous week’s European confidence evaporated and indices headed lower. But then Europe’s automotive sector was boosted by Daimler posting a surprise Q3 pre-tax profit of €3.1bn on Thursday. This Stuttgart-based Mercedes Benz purveyor got a mighty share-price lift by beating market expectations and bonhomie spread across into France, where PSA and Renault also rose.         

Unfortunately, other Teutonic petrolheads weren’t invited to the party. BMW and Volkswagen both reversed recent gains. And KTM parent Pierer was on the back foot too. Recovery as the weekend approached wasn’t enough to dig Frankfurt’s Xetra Dax index out of a hole. It closed 1.1% in arrears.       

Currency: euro

Price

Week

Month

BMW

62.84

-2.5%

-1%

Volkswagen

146.10

-0.4%

-3.6%

Pierer Mobility

50.50

-1%

-4.7%

A similar two-pronged tendency afflicted Milan’s Borsa Italiana, where the MIB index retreated by 1%. Piaggio slid more abruptly across the week’s variations. Surprisingly, Energica fared slightly worse, even though it was basking in a freshly announced extension of its MotoGP MotoE World Cup control-bike contract with Dorna, now running through to the end of 2022.          

Currency: euro

Price

Week

Month

Piaggio Group

2.38

-3.3%

N/A

Energica Motor

1.55

-3.7%

-18%

JAPAN — US ELECTION JITTERS 

The increasingly shambolic uncertainties associated with American electioneering and Trump’s laughable attempts at disease management unsettled the Japanese, who always fear baleful US influences on their economy. Tokyo’s formerly returning confidence crumbled and its Nikkei 225 index lost 0.9%. All four indigenous motorcycle manufacturers fell by greater degrees.                                                                                                                                                                                                             

Currency: yen

Price

Week

Month

Honda

2531

-2%

-3.1%

Yamaha

1507

-6.5%

-5.5%

Suzuki

4613

-5.2%

+7.2%

Kawasaki

1281

-8.6%

-16.1%

INDIA — A TEMPORARY SET-BACK?

The still rapidly mounting Covid infection rate and death toll in India has started to subvert festive-season economic jubilation, knocking Mumbai’s BSE Sensex 30 stock index into the red by 1.3% — after a series of muscular advances since late September.                 

Motorcycle producers generally followed this depressed sentiment. The exception was Royal Enfield parent Eicher, adding value against the flow, after sneak pictures of its forthcoming Harleyesque 650cc twin cruiser as an almost ready to rock and roll preproduction prototype were splashed all over Indian newspapers. This is a very serious export project engendering national pride, that couldn’t do the factory any harm whatever the circumstances…          

Currency: rupee

Price

Week

Month

Hero MotoCorp

3346.45

+0.6%

+7.5%

Bajaj Auto

3044.75

-0.5%

-0.2%

TVS Motor

463.25      

-1.7%

+1.3%

Eicher Motors

2269.90

+2.3%

+5.4%

Mahindra

606.65

-4.2%

-7.3%

CHINA — NUMBERS CRUNCH

Fully back in business over the past five sessions, the Chinese were relaxed after their Golden Week vacations and Shanghai’s SSE Composite index stacked on 2%. Biker stocks did significantly less well, though. While our BDN Ten index of China’s listed motorcycle manufacturers showed a gain of 1.4%, that was a distortion. A great leap forward from burgeoning brand CFMoto completely queered the figures. Averaged together, the other nine were just 0.1% up. CFMoto’s perennial investment popularity is due to two factors. Sure, it’s a big exporter with close ties to KTM technology-wise. Bit the company also makes the relatively high-end steed of choice for elite Chinese police forces — as ridden by President Xi Jinping’s honour guard surrounding his limo. CFMoto shares are, therefore, a patriotic purchase.          

Currency: yuan

Price

Week

Month

Qianjiang

23.15

-4.1%

-7.4%

Zongshen

8.30

-0.7%

-1.5%

Sundiro

3.65

+0.3%

-2.7%

CETC Energy    

6.02

+1%

-1.5%

Lifan

5.56

-5%

-0.5%

Loncin

3.94

+1.8%

-3.7%

Linhai

6.98

+2.2%

-2.4%

Guangzhou Auto

10.13

+4.3%

-6.8%

CFMoto

154.00

+14%

+11.8%

Currency: HK dollar

Price

Week

Month

Jianshe

4.65

-0.2%

-2.3%