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Australian share market crashes, more than $54 billion wiped

It’s a sea of red on the Australian share market, with more than $54 billion wiped from its value as the market has fallen to its lowest level in 12 months.

Stocks in wealth manager AMP haemorrhaged nearly 25 per cent.

AMP is selling the insurance arm of its business in Australian and New Zealand and has admitted it’s lost $1.5 billion from its investment management business in the last three months alone.

The All Ordinaries closed almost three per cent in the red.

Wilson Asset Management Chief Investment Officer Chris Scott says it’s the “worst day we’ve had in a while”.

He tells Ross Greenwood it’s a “technical” correction and there are still “tougher times” ahead.

“We will have short bursts… but the overall direction of the market in Australia, and globally for that matter, is down for the next year or so.”

Mr Scott says due to the repercussions of the Banking Royal Commission AMP “will continue to remain under pressure…. until we get clarity on a number of those issues.”

Click PLAY below to hear the full interview

Rice Warner Chairman Michael Rice tells Ross AMP’s insurance arm sold for a “discount”.

“It’s been sold for about 80 per cent of embedded value.

“But I think it’s only a discount if you believe the business would’ve stayed on the books.

“And they’ve got such strong outflows and such a poor brand at the moment that there’s obviously a reputation risk that’s been built into the price.”

Click PLAY below to hear the full interview with Michael Rice

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