AMP Share Price Plummets to a New Low, Down 13.63%

By ,

AMP Limited’s [ASX:AMP] share price fell by over 13% yesterday and is currently sitting at a pitiful $1.86 per share at time of writing.

At just after 11am yesterday morning, the shares were trading hands at double the normal volume, showing that investors are scrambling over one another for an escape route.

The company has had a bad year in general on the back of bad press after the royal commission uncovered dodgy internal practices.

But what’s happened recently that’s got the market in a tizzy?

An unwelcome announcement

AMP announced yesterday that it’s unlikely to pay an interim dividend for the first half of the current year. The fallen giant also revealed that it was unable to sell its AMP Life insurance arm. This was meant to bring in a hefty $3.3 billion, now down the drain.

It’s reported that the failure to make the sale is due, in part, to opposition from New Zealand’s central bank.

Poor financial results have created a vicious cycle over the past several months, where nervous investors are trying to get out as quickly as they can. But this recent news will still pack a painful punch for those loyal to the financial services titan.

The board has told shareholders that it will continue to be sensible about capital managements, and expects to report a ‘Level 3 eligible capital surplus above minimum regulatory requirements’ for the first half.

What’s next for AMP?

It seems that the list of AMP’s problems is a very long one. You’ve got extensive brand damage from the royal commission, restrictions from the financial regulator, poor results for shareholders and an inability to execute business deals.

This spot of bad weather doesn’t look like it will clear up anytime soon.

Regards,

Ryan Dinse,

For Money Morning

PS: Revealed – Money Morning’s #1 fully-franked dividend for 2019. Click here to learn more. 

About Ryan Dinse

Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately…

AMP Share Price up on Takeover — the Big Picture

At time of writing, the share price of AMP Ltd [ASX:AMP] is up over 20%, trading at $1.56, after a takeover offer came from US investment giant Ares Management.

AMP Share Price Down, Preparing for the Worst (ASX:AMP)

The struggling financial giant gave warning to its investors recently of some unimpressive unaudited earnings. AMP Ltd [ASX:AMP] announced it expected its profits to range in the $140–$150 million mark — over a 50% decline from 2019…

AMP Share Price Up: A Long Uncertain Road Awaits

At time of writing, the share price of AMP Ltd [ASX:AMP] is up 1.92%, trading at $1.325. We take a look at AMP’s latest update, and the outlook for the AMP share price.

Why the AMP Share Price Could Stay in a Range for a Long Time (ASX: AMP)

At time of writing, the share price of AMP Ltd [ASX:AMP] is down 1.08%, trading at $1.84. This movement is taking place on a day where the ASX 200 shed over 100 points in the first 15 minutes of trading. So it’s not surprising that AMP shares were caught up in the viral fear…

AMP Share Price is Up 25% in Two Months: Up, Down Or Sideways?

We conclude that due to the ongoing restructure of its business, there could be limited future upside to the stock until it has completed the sale of its life insurance business. Beyond that, macro headwinds point to a clouded future for the big players in financial services.

Afterpay Share Price up Today: Investors Think BNPL Giant Has Dodged Bullet (ASX: APT)

The Afterpay Touch Group Limited [ASX:APT] share price is up 8.53% today, trading at $33.09. After a slump between mid-October and early November, the Afterpay share price notched up multiple winning sessions in the lead up to today’s announcement…