AMP Share Price Drops Slightly

AMP Limited’s [ASX:AMP] share price has only slightly dropped by 0.30%.

Bringing in new talent

The departure of chief executive Craig Meller has prompted AMP to search for a replacement.

Mr Meller, who has been with AMP since 2007 will be stepping down at the end of the year to spend more time with his family and his elderly parents in the United Kingdom.

Chief investment officer, Hugh Dive stated that there needs to be a pair of fresh eyes to run the business. He prefers to see an external candidate make the necessary changes the company needs.

The Sydney Morning Herald reported that chairman Catherine Brenner stated:

As it’s important to have continuity of leadership to deliver on our longer-term growth ambitions, Craig and the board jointly agreed the time is right to begin searching for his successor.

AMP was aware of Meller’s decision as he had told the board he wanted to retire by the end of 2018.

AMP’s housing predictions

The multi-billion-dollar company expects Sydney and Melbourne’s house prices to fall by 5% during the year.

Shane Oliver, head of investment strategy and chief economist at AMP, feels that weaker auction rates and moderating housing finances to investors are all contributing to buyers seeking property elsewhere in Australia.

Business Insider Australia reported that Shane Oliver stated:

The combination of reduced lending to investors and interest only borrowers following pressure on the banks last year from APRA to tighten lending standards along with tougher restrictions on foreign buyers, rising supply and more realistic price expectations by buyers are all clearly working to slow the previously booming Sydney and Melbourne residential property markets.

AMP believes tighter restrictions on interest-only mortgage leading are behind the moderation in Australia’s largest and most expensive markets.

Regards,

Ryan Clarkson-Ledward
For Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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