CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

AMP share price: what’s the outlook as FY20 guidance is withdrawn

With AMP today withdrawing its full-year guidance, we examine the market's response as well as the potential implications of the move.

AMP share price Source: BLoomberg

Beleaguered wealth manager AMP has today joined a long list of companies who have withdrawn their full-year guidance as a result of the coronavirus (Covid-19) crisis.

Mind you, even though its FY20 guidance has now been retracted, the wealth manager assured the market that its capital and liquidity positions were strong, as well as stressing that it remained committed to executing on its previously announced ‘transformation’ strategy.

Regardless of such assurances, amidst broad market gains, the AMP share price was still bid some 1.32% lower in the first 30-minutes of trade on Thursday, to a low of $1.125 per share.

Though a 1.32% decline is hardly disastrous – against a backdrop of rapidly declining earnings and an up-turned wealth management industry – AMP’s equity has faced high levels of selling pressure for some time now; well before the Covid-19 crisis emerged.

In the last month alone the AMP share price has declined close to 40%; in the last year it has fallen 46% and in the last five years a staggering 82% of value has been wiped out.

For point of reference, in August 2019 the wealth manager raised some $650 million of fresh capital at $1.60 per share, a position well under water at current price levels.

How to trade on AMP share price moves

Where do you stand: Has AMP been oversold or are there more declines still to come? Trade accordingly. You can use CFDs to trade AMP and other financial stocks – long or short through IG’s world-class trading platform now.

For example, to buy (long) or sell (short) AMP using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘AMP’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

CEO comments at a glance

Stock gyrations aside, the company today reiterated that its much-hyped sale of AMP Life remains on track to be completed by 30 June; that the divestment from its New Zealand wealth management operations continue; and that its client remediation program is set to be fully finalised by 2021.

In other words, besides pulling its FY20 guidance, AMP’s cornerstone ‘transformation’ projects remain unaffected by the coronavirus.

Speaking more generally to the Covid-19 impact – AMP’s CEO – Francesco De Ferrari said:

'In response to uncertainty in Australia and globally, we have taken decisive action to support our clients and people, while working to maintain the strength and resilience of our business.'

'Whilst the situation is rapidly evolving, our immediate priorities are to support the public health efforts, help our clients make the right choices, and ensure our people are safe and working in healthy environments. Protocols and contingency plans are also in place to ensure our operations and client services can continue throughout the pandemic,’ Mr De Ferrari further noted.

According to the Wall Street Journal (WSJ); overall, the analyst consensus on the wealth manager’s prospects remain subdued, with analysts rating AMP a Hold overall, made up of 2 Buy ratings, 8 Hold ratings and 2 Sell ratings.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.