AMP ditched from top 20

Demotion could put further pressure on shares

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 triggered chief executive Craig Meller (pictured) and chairman Catherine Brenner to step down from their positions.

The removal will be effective at the market open on June 18.

The news comes as AMP pushes to fight shareholder class actions brought against it in the NSW Supreme Court instead of the Federal Court in Melbourne. AMP is facing class actions from several competing law firms.

The first proceedings against AMP, bought by Quinn Emanuel Urquhart & Sullivan, was filed in the NSW Supreme Court.

A further three class actions – by Phi Finney McDonald, Shine Lawyers and Slater & Gordon – have since been filed in the Federal Court.

Maurice Blackburn also intends to file a class action against AMP. AMP’s barrister, Elizabeth Collins, SC, told the Federal Court in Melbourne yesterday her client wanted the matters filed in that court to be dealt with in the NSW Supreme Court.

William Edwards, acting for Phi Finney McDonald, said his client wanted the case dealt with in the Federal Court and would oppose AMP’s application. Justice John Middleton ordered the application for a transfer be heard on August 14 in Sydney.

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, 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.