Why AMP, OFX, Rio Tinto, and Telstra shares are dropping

The S&P/ASX 200 Index (ASX: XJO) us having a very strong day on Thursday. In late trade, the benchmark index is up 1% to 7,061.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

AMP Ltd (ASX: AMP)

The AMP share price is down 2% to $1.14. Investors have been selling this financial services company’s shares following the release of its half year results. Not even the promise of a $1.1 billion capital return has been able to boost its shares today. Investors appear to be focusing more on its underlying after tax profit of $117 million, which was down 24.5% on on the prior corresponding period.

OFX Group Ltd (ASX: OFX)

The OFX share price is down almost 6% to $2.61. This morning the foreign exchange company released its annual general meeting update. At the event, the company reaffirmed its guidance for FY 2023. However, judging by its share price performance, investors appear to have been hoping there would be an upgrade to its EBITDA guidance of $55 million to $60 million.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is down 4% to $95.34. The catalyst for this has been the mining giant’s shares trading ex-dividend this morning for its upcoming dividend. Eligible shareholders can now look forward to being paid a fully franked $3.837 per share interim dividend in around six weeks on 22 September. This was the miner’s second largest interim dividend in its history.

Telstra Corporation Ltd (ASX: TLS)

The Telstra share price is down 1.5% to $3.95. This telco giant’s shares were having a good day this morning following the release of a strong full year result. However, they have faded as the day went on. This is despite its earnings coming in ahead of expectations in FY 2022. It’s possible that a rotation back into higher risk shares has reduced the appeal of Telstra today.

The post Why AMP, OFX, Rio Tinto, and Telstra shares are dropping appeared first on The Motley Fool Australia.

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More reading

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• Equity markets threaten to ‘melt up’ as Nasdaq enters bull market territory
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• AMP share price slides as $1.1b pledged to investors
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Motley Fool contributor James Mickleboro 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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