AMP pull guidnace but Life sale remains on track

AMP Ltd (AMP) +8.33%: had a choppy day today, but came in with a wet sail to close strongly higher. The financial services company walked away from guidance due to the “uncertain environment and resultant challenges in providing accurate forecasts” as a result of the COVID-19. Now one of many to pull guidance for the current year, AMP’s announcement was largely expected by the market though with the market already sitting below the guidance given at the half year result 6 weeks ago of “broadly flat on FY19.”

Investors did enjoy the update on the sale of the Life business. It was feared that the deal would be another victim of the pandemic, already weakened by regulatory hurdles. Today though, AMP said the sale is on track for a 30 June completion. Certainly a relief for the market. Though still facing a number of issues, completing the deal may help build a bit of momentum in AMP, so one to keep an eye on in to the end of financial year. Their Hybrids AMPPB are worth buying in anticipation of the life sale.

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