The AMP share price still hasn’t recovered from its worst day ever.
The post When was the worst ever day on the AMP (ASX:AMP) share price chart? appeared first on The Motley Fool Australia. –
If you had to guess what was the AMP Ltd (ASX: AMP) share price’s worst day ever, when would you point to?
Some might assume it was amid a market crash, such as 2008’s Global Financial Crisis. Or, perhaps, during the 2018 Banking Royal Commission. But they’d be wrong – although, the royal commission did plenty of damage to AMP shares.
The worst day ever faced by AMP shareholders was on October 25, 2018 – a seemingly benign, red day on the ASX.
Here’s what caused the AMP share price to plummet 24.47% to a 15-year low.
AMP’s worst day on the ASX
The fateful day for the AMP share price began with the company releasing 3 announcements to the market.
The announcements detailed the outcome of the company’s year-long portfolio review and its next steps forward.
These steps included selling off its Australian and New Zealand wealth protection and mature businesses, AMP Life, to Resolution Life for $3.3 billion.
Additionally, the company would see $150 million of capital released by insuring its New Zealand retail wealth protection with Swiss Re.
However, shareholders wouldn’t see all those funds. $800 million was flagged to pay AMP’s debts and the sale itself would cost the company $320 million.
Finally, AMP would divest its New Zealand wealth management and advice businesses through an initial public offering (IPO).
While the company’s acting CEO Mike Wilkins said the changes would make the company “a simpler, more focused group that is well-positioned to compete in our core markets”, investors seemingly thought otherwise.
What happened to the AMP share price next?
After the market opened on 25 October 2018, the AMP share price dropped from $3.29 to close at $2.50.
Since then, a prediction made by The Motley Fool Australia at the time has come true.
AMP still hasn’t recovered from the dip. In fact, the AMP share price has fallen another 57%.
Its shares are currently trading for $1.06 a piece.
Should you invest $1,000 in AMP right now?
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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.