AMP Limited’s stock value has decreased by 10.67% today.
The company provides life insurance, superannuation, pensions and other financial services in Australia and New Zealand.
At the time of writing, AMP has a market capitalisation of $9.27 billion and the share price is $3.18.
Why has [NZX:AMP] share price decreased today?
NZX stocks in general have largely fallen across the board today.
On top of this, AMP announced the outcome of the completion of its portfolio review, which includes three components:
- The sale of its wealth protection and mature businesses (AMP Life) to Resolution Life for a total consideration of AU$3.3 billion.
- A binding agreement with Swiss Re2 to reinsure New Zealand retail wealth protection to release up to AU$150 million in regulatory capital to AMP.
- Intention to seek divestment of New Zealand wealth management and advice businesses via initial public offering (IPO) in 2019.
Shareholders could be responding negatively to this news.
Where could the AMP share price go from here?
The AMP share price has been on a downward trajectory since early this year, with today’s sharp drop in share price further contributing to the decline.
AMP believes its leaner and simplified business portfolio will be better positioned to compete in a changing market. Time will tell if this is the case, but the current sentiment is negative and the downward trend looks likely to continue.
Editor, Money Morning New Zealand