The AMP Limited (ASX: AMP) share price hasn’t exactly made a name for itself as a strong ASX performer. The financial services company is up a robust 1.57% at 97 cents a share at the time of writing.
But over the past five years, the picture is shockingly bleak. Since April 2017, AMP shares have lost more than 81% of their value. Although AMP has been dealing with a number of issues over a number of years, most of these losses came in the wake of the company’s exposed misconduct during the 2018 banking royal commission.
But let’s not get too bogged down in the past and instead examine how this ASX 200 share fared over March, the month that has just passed.
So AMP shares began March at a price of 95 cents. Last Thursday, the company finished the trading day at 97 cents per share. That translates into a March gain of 2.11% for AMP. In contrast, the S&P/ASX 200 Index (ASX: XJO) had a very successful month, rising by a pleasing 6.4%.
So what might have prompted this more muted gain from AMP?
AMP shares rise in March but lose to the ASX 200
Well, we didn’t get a lot of news out of the company over March. Back in February, AMP seemingly disappointed investors when its half-year earnings came without a dividend. So that might have played a role last month too.
Perhaps the biggest piece of March news came just last week. Last Monday, AMP announced that it had successfully finalised the sale of its Global Equities and Fixed Income division to Macquarie Group Ltd (ASX: MQG).
Although this sale was first gazetted last year, it represents a milestone for the company as it helps set up AMP for the planned demerger of its Collimate Capital division. The sale to Macquarie Asset Management will see roughly $47 billion in assets under management transferred to Macquarie. In return, AMP will receive $63 million in cash, with the possibility of another $75 million down the road, depending on some conditions.
Still, this news had little impact on AMP shares at the time, although the company’s share price has risen since this announcement was released. But even so, shareholders will no doubt welcome the gain AMP shares saw over March.
At the current AMP share price, this ASX 200 financials share has a market capitalisation of $3.16 billion.
The post Own AMP shares? Here’s how this ASX company did in March appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen 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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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