Market Watch | AMP profits plunge amid refund plans

AMP acting CEO Mike Wilkins. Picture: Louise Kennerley
AMP acting CEO Mike Wilkins. Picture: Louise Kennerley

The market finished the week at 6,366.80, up 40.40 points from the previous week's close of 6,326.40. On Friday's trade the All Ordinaries finished down 16.80 points or 0.26 per cent.        

Monday, online jobs giant Seek slumped $1.92, or 8.8 per cent, to a three-month low of $20.00 after slower revenue growth in 2018/19 and impairments on its Brazil and Mexico operations.

Lithium play Galaxy Resources lifted 3.3 per cent to $2.84, after its deal to sell Argentine assets to South Korea's POSCO for $US280 million was ahead of schedule.

On Tuesday, Amcor announced a $US6.8 billion acquisition of US rival Bemis. The deal expands Amcor's global footprint, particularly in the US flexible packaging market, but investors sold the stock down 89 cents, or 5.8 per cent, to $14.39 on worries the return on investment would not be equal to previous Amcor bolt-ons.

Roads giant Transurban lifted 12 cents, or one per cent, to $12.02 after announcing it had doubled full-year net profit to $485 million, helped by healthy growth in revenue as more trucks took to its toll roads. TCL ended the week on $11.90.

Wednesday, results from CBA, AMP and Tabcorp got the August reporting season underway and the market responded positively.

AMP's half-year profit plunged by 74 per cent due to the company setting aside $290 million to refund and compensate customers it overcharged. Its underlying profit - excluding the compensation provisions - was $495 million, down from $533 million. AMP shares lifted 13 cents, or 3.9 per cent, to $3.48.

Thursday, Suncorp, Australia's second-largest general insurer, rose 4.7 per cent to $15.70 as it showed an improved second half in its full-year results and announced its plan to sell its life insurance division for $725 million, ending over a year of speculation on the sale. Suncorp ended the week on $15.63.

At the close of weekly trading, the gold price finished at $1,220 per ounce, the WTI oil price traded at $65.35 a barrel, and the Australian dollar was worth US $0.73306.