AMP’s woes have led to the embattled wealth management giant being removed from the Australian share market’s ASX20 index.
AMP, which has seen more than $2 billion stripped from its market value following the scandals revealed at the banking royal commission, has been dropped from the index of the 20 largest companies on the Australian Securities Exchange and replaced by global packaging company Amcor Limited.
The demotion could add even more pressure on AMP shares which went into a freefall after the wealth manager admitted to charging clients for advice they never received and repeatedly lying to the corporate watchdog about it.
The revelations, which triggered chief executive Craig Meller and chairman Catherine Brenner to step down from their positions at AMP, wiped more than $2 billion off the company’s market capitalisation.
The removal from the ASX20 index will be effective at the market open on June 18, 2018.
Meanwhile Gloria Jean’s and Donut King franchise owner Retail Food Group has been removed from the benchmark ASX200 index.
Retail Food Group has grappled with a weak market and soaring restructure costs and, last December, the company was the subject of media reports alleging it had mistreated franchisees.
The group’s shares have plummeted from around $4.40 in December to 67 cents at Thursday’s close.
And, Myer’s tumbling share price has led to its removal from the ASX All Australians 200 index.
It comes after the embattled department store chain was removed from the benchmark ASX200 in March after its shares shed two thirds of their value in a year amid sluggish sales and a series of profit warnings.