Register / Sign in

Share prices

02/11/2020

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 30 October 2020. BDN financial editor Roger Willis reports.

USA — IMPENDING DOOM

American confidence was battered by an unpredictable presidential election outcome, some surprisingly poor quarterly corporate results — most notably from Apple — and the relentless menace of second wave Covid-19 resurgence. Indeed, severity of the latter infected markets worldwide with abiding gloom. This combination inflicted the worst trading week on Wall Street since March, despite a revelation that the US economy had grown at its fastest pace on record during Q3.                     

All major US stock indices plunged on a weekly basis. The S&P 500 and Dow Jones Industrial Average closed respectively 5.6% and 6.5% down. The S&P MidCap 400 lost 5.7%. America’s two leading bike manufacturers revealed their nine-monthly results mid-week, to mixed applause. Polaris, which had recovered tremendously in the third quarter, received absolutely no reward for such efforts, its share price actually falling. Harley-Davidson, on the other hand, briefly basked in glory on the back of a Q3 profit hike concocted by clever accountancy.   

HOG-OMETER — A GLIMPSE OF PARADISE

A 3.6% decline for Harley shares on Monday was hardly auspicious for the content of corporate results due for release on the following day. But then speculators didn’t bother reading the small print and swallowed headline figures promising more jam tomorrow on Tuesday morning. The Hog-ometer went berserk when they placed bets and Harley’s value soared to the tune of an incredible 22.1% by end of play that afternoon.         

Celebrations were short-lived. On Wednesday, investment bank Morgan Stanley downgraded Harley stock to “equal weight” between buy or sell choices, advising caution because quantitative targets had been suspiciously absent from the results statement. This intervention promptly wiped 4.4% off the price, which then festered in stasis on Thursday. Friday concluded with another retreat, a further 2.9% down.            

Currency: dollar

Price

Week

Month

Harley-Davidson

32.88

+9.3%

+27.4%

Polaris Industries

90.86

-1.2%

-8.1%

Textron

35.80

+1.7%

+0.2%

EUROPE — PANIC STATIONS 

A dose of very good news, that eurozone GDP had grown by a splendid 12.7% in Q3, did nothing to assuage fears that European countries were about to be overwhelmed by economically damaging lockdowns again in Q4, to stem the deadly tide of rampaging Coronavirus. In Germany, Frankfurt’s Xetra Dax stock index responded by executing a dramatic 8.6% weekly dive.          

Volkswagen, despite having just announced an overall return to profitability in Q3 (including its Ducati subsidiary’s ongoing positive performance), was treated without mercy. BMW, which is expected to release upbeat Q3 figures in a few days too, took a similar hammering. KTM parent Pierer got away with a comparatively small reversal.         

Currency: euro

Price

Week

Month

BMW

58.82

-7.7%

-5.2%

Volkswagen

134.70

-8.2%

-6%

Pierer Mobility

51.00

-1%

+1%

The same terror of Covid-19’s renewed assault swept through Italy, where the Borsa Italiana’s MIB index in Milan fell by 7%. Piaggio shares were getting progressively cheaper in line with depressed sentiment for almost the whole week. But then the company unveiled strong nine-monthly results on Friday, displaying a consistent path to recovery. The prize from jubilant investors was a single-session spike in value of 9.5%, to finish in moderately positive territory. Energica had no saving grace of this ilk to flourish and just went down with the flow.  

Currency: euro

Price

Week

Month

Piaggio Group

2.34

+1.7%

-4.9%

Energica Motor

1.37

-5.5%

-9.3%

JAPAN — TO BE TRUMPED AGAIN? 

Apart from ubiquitous Covid-19 worries, Japanese nerves were also frayed by potential consequences from the imminent US elections. Tokyo’s stock market swerved backwards yet again, having been up and down like the proverbial geisha girl’s kimono hem repeatedly in recent weeks. This time, the Nikkei 225 index dropped by 2.3%. All four indigenous motorcycle manufacturers took worse punishment. Kawasaki’s spanking would have been compounded by half-year corporate losses announced on Thursday.                                                                  

Currency: yen

Price

Week

Month

Honda

2435

-5.6%

-2.5%

Yamaha

1483

-5.7%

-3.9%

Suzuki

4457

-3.8%

-0.4%

Kawasaki

1240

-8.6%

-9.5%

INDIA — RIDING IN THE SLOW LANE

Seesaw behaviour is now endemic behaviour among Indian punters on the Bombay Stock Exchange, primarily driven by Coronavirus-related economic impacts. Mumbai’s BSE Sensex 30 index flipped from the previous week’s 1.8% gain to a 2.6% retreat. However, local biker shares have been losing popularity more consistently through October.                

For a second week on the trot, market leader Hero MotoCorp’s share price copped the most brutal abuse. But reversals for its compatriots have become fairly universal. Only TVS bucked this negative trend in the past week.         

Currency: rupee

Price

Week

Month

Hero MotoCorp

2799.80

-10%

-11.2%

Bajaj Auto

2886.90

-6.3%

-3.3%

TVS Motor

455.50      

+2.4%

-5.1%

Eicher Motors

2085.60

-4.4%

-5.1%

Mahindra

594.00

-5%

-2.6%

CHINA — HIDDEN HARLEY BONUS?

The Chinese mood remained subdued, possibly because the US election outcome’s consequences in relation to China are inscrutable whichever presidential candidate comes out on top. Shanghai’s SSE Composite index fell by 1.6%, a second successive weekly retreat. Half of China’s ten listed bike producers lost ground. Most interesting was another double-digit percentage rise for Benelli parent Qianjiang. Harley-Davidson’s results statement, released during the week, had made no mention whatsoever of Qianjiang. So perhaps it is now safe to assume that Qianjiang’s somewhat controversial contract to make large quantities of a small Harley-branded motorcycle for emerging markets, based on the Benelli parts bin, is not subject to cancellation?            

Currency: yuan

Price

Week

Month

Qianjiang

28.90

+10.5%

+19.3%

Zongshen

7.92

+0.4%

-1.2%

Sundiro

3.30

-2.9%

-8.6%

CETC Energy    

5.83

-0.9%

+1.9%

Lifan

5.14

+2.6%

-7.7%

Loncin

3.80

-5.7%

+1.3%

Linhai

6.84

-2.4%

+1.2%

Guangzhou Auto

13.43

+12.1%

+41.1%

CFMoto

169.50

+11.1%

+28.3%

 

Currency: HK dollar

Price

Week

Month

Jianshe

4.68

-0.8%

+1.1%