AMP Shares Hit Eight-Year High, Before Cooling Off

AMP Ltd shares (ASX: AMP) pushed to an eight-year high of A$2.50 on Thursday before easing back, capping a rally that has more than doubled the stock from its 52-week low.

The AMP share price fell back 1.62% on Thursday to close at A$2.43, albeit with the decline occurring on notably light volume of just 0.59 times the average daily. Despite the pullback on the day, the stock remains up 2.97% week to date and has climbed from a 52-week low of A$1.14, a gain of more than 100% over that span.

The technical picture has arguably improved with the pullback as AMP’s RSI had reached approximately 85 on several occasions in recent weeks, deep in overbought territory, before easing to 65.65 into Friday’s open. That cooling suggests the latest selling reflects routine profit-taking rather than institutional distribution, potentially giving the stock a more stable platform from which to attempt a decisive break above A$2.50, a level it has not sustained since 2018.

Fundamentals Support The Rally

Underpinning the rally is AMP’s first-half FY26 result, which delivered some of the clearest evidence yet that the group’s multi-year restructuring is gaining traction. Underlying net profit after tax rose 32.8% year on year to A$174 million, while statutory profit surged 57.1% to A$154 million. Group assets under management expanded 8.9% to A$167.6 billion, and the cost-to-income ratio improved from 63.0% to 60.5%.

Two operational milestones stood out. Net cash inflows in the Platforms division climbed 33% to A$3.1 billion, supported by new financial adviser activations. More symbolically, the Superannuation and Investments division recorded its first positive half-year net cash flow since 2017, an inflow of A$76 million compared with a A$75 million outflow in the prior corresponding period, removing a headwind that had weighed on the stock for nearly a decade.

Capital management has provided an additional pillar of support. AMP has authorised a A$150 million on-market share buyback running through April 2027, managed by UBS, with brokers reporting consistent daily repurchases in late August and early September at prices between A$2.33 and A$2.47. The program reduces the roughly 2.43 billion shares on issue, accelerating per-share earnings growth, while the interim dividend was lifted to 3.0 cents per share, 20% franked.

Perhaps the most unexpected driver of the re-rating has come from offshore. AMP’s strategic Chinese holdings, a 20% stake in China Life Pension Co and a 15% stake in China Life AMP Asset Management, generated earnings of A$56 million in the half, up 107% year on year, with China Life Pension’s assets under management reaching RMB 2.6 trillion. The contribution offers high-margin, equity-accounted earnings diversified away from the intensely competitive domestic market.

What Comes Next?

The immediate question for markets is whether A$2.50 becomes a floor or a ceiling. On the constructive side, the light-volume pullback and normalised RSI reset overbought conditions without damaging the uptrend, and the active buyback provides a natural bid beneath the stock. Continued platform inflows, sustained positive superannuation flows and further growth from the Chinese joint ventures would strengthen the fundamental case for a breakout.

On the cautious side, a repeated failure at A$2.50 would risk forming a short-term double-top pattern, with support around A$2.25 to A$2.30 should momentum fade.