AMP shares slump further

By NZPA

Tuesday 28th January 2003

Shares in AMP Ltd tumbled by more than five percent in early trade today following hefty losses among its British peers overnight.

AMP's shares were 58 cents, or 5.9 percent, lower to their lowest ever level at $A9.22 by 1017 AEDT. In New Zealand the shares were down 54c to $9.80 at 1.26pm.

The falls came after worries about a possible war in Iraq sparked worries about solvency levels among British insurance companies.

Royal & Sun Alliance, Aviva and Prudential all suffered heavy falls in overnight trading in London, where the FTSE 100 index slumped 122.9 points, or 3.4 percent, to 3,480.8.

It was the 11th consecutive session the FTSE had fallen and crashed through the key technical support which had been drawn at 3,600 points.

Investors were concerned the insurance giants might have to sell down their equity holdings to meet solvency requirements amid continuing falls on global indices.

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