AMP Limited: Why these 4 shares are getting crunched today

It has been another tough day for local investors with the S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) falling another 0.54% to 5,266 points.

Interest rate sensitive shares are under the most pressure again today, with the property and industrials sectors amongst the biggest losers. The energy and materials sectors are the best-performing sectors today thanks to a rise in overnight oil and commodity prices.

Four shares that are getting crunched today, include:

AMP Limited (ASX: AMP)

AMP is the biggest drag on the overall market today after the company announced a $668 million write-down relating to its underperforming Australian wealth protection business. The company also announced that the ongoing challenging conditions in this division will result in a $44 million loss for the third quarter. Investors have been less than pleased with this update, sending the shares more than 9% lower to $4.65.

SG Fleet Group Ltd (ASX: SGF)

Shares of SG Fleet have plummeted more than 10.5% today as investors continue to reconsider the value of the company in light of yesterday’s AGM market update. It appears investors have been left underwhelmed with the salary packaging and fleet management provider’s FY17 guidance for NPATA growth of 20%-25%. With today’s fall, the shares have now lost more than 30% since hitting their all-time high in August.

Carsales.Com Ltd (ASX: CAR)

Shares of Carsales have fallen more than 4.5% after the online car advertiser provided a disappointing update at its AGM today. Although the core domestic business continues to perform well, its Financial and related services division remains under pressure as a result of continued reductions in volume capacity. Carsales now expects first half revenue and EBITDA for this segment to be substantially below FY16. Considering the shares still trade on a lofty earnings multiple of nearly 25x, I wouldn’t be surprised to see further share price weakness in the short term.

Ausdrill Limited (ASX: ASL)

Shares of Ausdrill have tumbled more than 5% after the mining services and drilling company provided a subdued outlook at its AGM today. Although the company has seen increased activity in both mining and exploration markets recently, competition for work remains competitive with excess capacity still in the market. As a result, margins remain under pressure both in Australia and Africa. Despite today’s fall, the shares have still managed to climb more than 392% since the start of 2016.

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Motley Fool contributor Christopher Georges has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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