Here’s why the AMP share price underperformed last month.
The post Why did the AMP (ASX:AMP) share price have such a terrible September? appeared first on The Motley Fool Australia. –
Last month was lousy for the AMP Ltd (ASX: AMP) share price despite no news having been released by the financial services company.
AMP’s stock started September trading at $1.10.
The month just gone saw it hit an all-time low. It reached 88.5 cents for the first time in its 22-year life as an ASX-listed company on 21 September.
At the time of writing, the AMP share price has rebounded slightly. It is currently 99 cents.
That represents a 10% drop over the course of September.
For comparison, the S&P/ASX 200 Index (ASX: XJO) fell 2.6% over the month just been.
So, what drove the AMP share price downwards in September? Let’s take a look.
The month that was for AMP
The AMP share price had an awful September on the ASX, dropping 10% despite no news having been released by the company.
While there was no news from AMP, the company hit headlines a number of times. It has had a lawsuit taken up against it and the future control of its AMP Capital Wholesale Office Fund has been questioned.
However, as there’s been no price-sensitive news out of AMP since August, its poor month’s performance is likely the continuation of an existing trend.
The AMP share price has been generally falling since 2018 when the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry dragged the financial institution through the coals.
The Royal Commission uncovered misconduct committed by AMP. It led to AMP admitting it had deceived the Australian Securities and Investment Commission (ASIC) and charged its customers fees without providing a service.
ASIC dropped its investigation into AMP’s alleged criminal misconduct in July. Though, the good news hasn’t noticeably bolstered the financial services provider’s stock in the long term.
AMP’s planned demerger might have also weighed on its share price last month. AMP announced its plan to demerge from its Private Markets business in April.
The company provided an update on the demerger in August. It hopes to be running AMP and its Private Markets business separately by the end of 2021 ahead of a demerger in the first half of 2022.
AMP share price snapshot
Last month’s poor performance has added to AMP’s recent woes.
Its stock’s value has fallen 36.5% over the course of 2021. It is also trading for 26.6% less than it was this time last year.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.