How is the AMP (ASX:AMP) share price performing against the financial sector in 2021?

Can the company’s shares make a comeback in the last month of the year?

| More on:
Boy looks confused as he adds up on an abacus

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AMP Ltd (ASX: AMP) share price has failed to outperform the market this year, continuing its gradual decline. Despite delivering a largely sound third-quarter trading update last month, the financial services company is struggling with positive investor sentiment.

At the closing bell on Thursday, AMP shares finished down 5% at $1.05. This means its shares have lost nearly 10% in the past week.

What’s happened to AMP recently?

Investors have been dragging down the AMP share price despite a robust third-quarter update from the company on 21 October.

AMP reported that its capital assets under management (AUM) fell to $180.3 billion, a drop of 4.04% compared to the first half. The impact was primarily caused by net cash outflows which came to $12 billion for the quarter. In context, net cash outflows totalled $2.4 billion in Q3 FY20.

In AMP’s New Zealand wealth management portfolio, AUM increased to $12.9 billion, up $300 million quarter-on-quarter. The sound result was driven by investment market gains which offset net cash outflows of $39 million.

The demerger program is scheduled for competition by the middle of FY22. This will see the transition of MAG from AMP Capital to AMP Australia, creating a superannuation and investment platform business.

AMP advised it will provide a further update on its progress regarding the demerger at an Investor Day on 30 November. In addition, the company will also lay out what’s ahead for the remaining financial year as well as FY22.

How does the AMP share price compare to the financial sector?

Over the last 12 months, the AMP share price has moved 40% lower and is down by 33% year to date. The company’s shares hit a multi-decade low of 88.5 cents in September 2021, before moving in circles.

In contrast, the S&P/ASX 200 Financials Index (ASX: XFJ) has gained 14% from this time last year and is up almost 19% year to date. The sector also registered a 52-week high of 6,956.4 points in late October.

Undoubtedly, AMP shares are lagging behind the Financial Index which has continued to accelerate since March 2020.

Based on today’s price, AMP commands a market capitalisation of roughly $3.59 billion, with approximately 3.27 billion shares on issue.

Motley Fool contributor Aaron Teboneras 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.

More on Financial Shares

A man in his 30s holds his computer underneath and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Financial Shares

Are AMP shareholders heading for a $1 billion pay day?

AMP shareholders could benefit from buybacks following the successful divestment of AMP’s Collimate Capital business.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Mergers & Acquisitions

Macquarie share price slips despite rumours $3.7 billion acquisition imminent

French company Veolia is divesting itself of the assets to resolve antitrust concerns raised in May by UK regulators.

Read more »

A young woman slumped in her chair while looking at her laptop
Financial Shares

Suncorp share price slides following softer-than-expected FY2022 results

Investors appear less than impressed after the insurance giant released its earnings results today.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin.
Earnings Results

Suncorp share price on watch after FY22 profit falls 34%

Suncorp shares will be on watch on Monday following the release of its FY 2022 results....

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Broker Notes

Why has the Suncorp share price gone backwards since the ANZ takeover news?

What's going on with the Suncorp share price?

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Financial Shares

What’s $1 billion between friends? Magellan share price shrugs off latest FUM figures

It's up and then it's down. Investors are having trouble deciding whether today's news is good or bad.

Read more »

A man sits at a desk with a phone in one hand, his other hand on his chin and studies a computer screen in front of him with what appears to be cryptocurrency data on both screens.
Financial Shares

Up 13% in July, can the AMP share price maintain its momentum?

AMP shares have caught a bid since July.

Read more »

a woman sits in her home with chin resting on her hand and looking at her laptop computer with some reflection with an assortment of books and documents on her table.
Financial Shares

Is the NAB share price a buy ahead of next week’s quarterly update?

Here's what one expert predicts in the bank's upcoming results.

Read more »