Spending pledge precedes rise in share prices for cycling businesses

Listed cycling businesses saw an uplift in share price as markets opened following the weekend’s promises from government to boost funding for cycling in the UK.

Transport Secretary Grant Shapps announced £2 billion for cycling and walking, including a fast tracked £250 million for pop-up bikes lanes and vouchers for cycle repairs.

Halfords share price sharply rose 16%, from 156.20 when the London Stock Exchange opened at 8am to 182.60, and has since maintained a substantial increase, 178.76 at time of writing (up 14%).

Tandem Group started the day at 180.00 and rose to 199.70 (up 10%). That figure has risen considerably since then, to 238 at time of writing (up 38%).

Accell started at 17.08 before peaking at 20.15 (up 18%) within the first hour of trading today. Currently it sits at 19.00 (up 11%).

On the Tokyo Stock Exchange, Shimano saw an uplift too (up 4%, from 17,270 to 18,030), but there’s a good chance that is at least partly due to last week’s flurry of new product announcements from the ever-popular components specialist.