Why AMP’s Share Price Is Down 12% Today

AMP Limited’s [ASX:AMP] share price has been crushed today, down 12% on the back of massive trading volumes.

It is now trading at $2.91, a 15-year low.

Below you can see the shares getting pummelled:

AMP Chart market index

Source: marketindex.com.au

Get the names of five other fatal stocks in our free report by Markets & Money’s Vern Gowdie.

AMP’s share price hit by sale of life insurance arm

AMP announced on Thursday that it would sell its life insurance arm to British Resolution Life for $3.3 billion.

This represents a 20% below book value sale.

It is also the same life insurance arm that was caught charging dead people for life insurance.

Among other things weighing down its share price is the revelation that there was a sharp rise in clients withdrawing from its Aussie wealth management division in July, August and September.

In total, the 169-year-old business has lost 43% since the Banking Royal Commission began, and seven senior officials have left the firm in that same timeframe.

Where AMP’s share price can go from here

The company remains under a massive cloud.

That being said, it pays a healthy dividend yield of 7.8%.

For now, it’s still profitable with its first half of the year profit coming in at $115 million.

It would be a brave investor that jumps in on AMP now, but big financial companies have bounced back from regulatory scares in the past.

One to watch closely for sure.


Ryan Dinse,
For Markets & Money

PS: AMP shares an eerie similarity to these other five fatal stocks you should avoid at all costs — find out what they are in our free report, available here.

Ryan Dinse is an analyst at Markets and Money. He has two decades of experience in financial planning, equity analysis and credit markets. Ryan combines fundamental, technical and economic analysis to identify and invest in good ideas at the appropriate stage of the economic cycle. He has a strong interest in technology, economic history and disruptive business models. His focus at the moment is as lead analyst on two of our most recent and innovative investor services, Crash Market Investor and Sam Volkering’s Secret Crypto Network. He will write about the exciting opportunities for investors to benefit from significant changes in world markets. He is a member of Fintech Australia, a former member of the Digital Currency Council, and is a fully accredited financial adviser.

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