Why did the AMP share price surge 8% in November?

a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.

November was a good month for AMP Ltd (ASX: AMP) share price. Indeed, it hit many 52-week highs throughout the course of the month.

After closing October at $1.26, shares in the financial services company rose 7.94% to finish November trading at $1.36.

Over the period, it hit a low of $1.245 and a high of $1.365. At the time, that marked the stock’s highest point since March 2021.  

So, what helped drive the AMP share price to outperform in November? Let’s take a look.

What went right for the AMP share price last month?

Shares in AMP took off alongside the broader market last month. While the stock soared 8%, the S&P/ASX 200 Index (ASX: XJO) lifted 6.13%, and the S&P/ASX 200 Financials Index (ASX: XFJ) – AMP’s home sector – rose 1.14%.

Interestingly, there was no price-sensitive word from AMP. Though, some non-price-sensitive news from the company might have pricked the ears of investors.

AMP revealed the sale of its Collimate Capital businesses would miss their previously predicted November completion due to regulatory delays on 15 November.

The company announced Collimate’s domestic business would be sold to Dexus Property Group (ASX: DXS) and its international business to DigitalBridge way back in April.

AMP shareholders are expected to receive most of the proceeds from the sales in the form of capital returns.

November also saw the company reveal the appointment of its new chief financial officer (CFO), Peter Fredricson. Fredricson has previously held CFO roles at former ASX 200 energy giant Oil Search and APA Group (ASX: APA).

Finally, as of the end of November, AMP has snapped up nearly $230 million worth of its own shares as part of the $350 million on-market buyback announced in August. The buyback is part of a $1.1 billion capital return.

Share price snapshot

Including last month’s positive momentum, the AMP share price is trading 33% higher year to date. It has also gained 45% since this time last year. The embattled stock is still 75% lower than it was five years ago, however.

For comparison, the ASX 200 has fallen 4% year to date, gained 1% over the last 12 months, and lifted 22% over the last five years.

The post Why did the AMP share price surge 8% in November? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of December 1 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

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 positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/6xzf3dg

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s