AMP heads towards record lows
AMP shares ended the day 48 cents lower at $12.83 yesterday, just off their all-time low of $12.70 at the beginning of last month. Investors are nervous about the insurer's $750 million hybrid capital raising and the continued uncertainty in world equity markets.
One analyst said that the share price fall was strongly correlated with AMP's performance in the UK market: every time there's weakness there it affects AMP, he said. And even though the intention for the capital raising was signalled, it emphasises the tough market it's operating in and investors are reminded of that fact. Intersuisse has rated AMP a “hold”, with its prospects and share price dependent in the short term on the FTSE. Yield-conscious investors may be interested in the capital raising, Intersuisse said, as it could prove to be positive.