In today’s daily we have covered stock research on AMP. To view Top 25 Dividend Stocks as per their yield click here

S&P 500 was up by 5.62 points or 0.30% to 1883.95 on Wednesday. S&P 500 rose on Wednesday, with the Dow Jones industrial average ending at a new closing high, as the Federal Reserve gave an upbeat view of the economy's prospects as it announced another cut to its bond-buying program.

The Fed said in a statement it would reduce its monthly bond purchases to $45 billion from $55 billion, as expected. That will keep it on track to end the program as soon as October. Nine of the 10 S&P 500 sectors ended in the black, led by the economically-sensitive S&P materials sector up 0.8 percent. Exxon Mobil up 0.9 percent at $102.41, led gains on the S&P 500. Investors brushed aside data showing weak first-quarter economic growth, which was tied to the severe winter that hampered exports and hit investment spending.


S&P 500 Daily Chart   (Source – Thomson Reuters)

S&P ASX 200 was up by 2.5 points or 0.05% on Wednesday and closed at 5489.1 points. Infrastructure group Hastings Funds Management and a Chinese state owned corporation, China Merchants has paid $1.75 billion for a 98 year lease for the Port of Newcastle. Woolworths has indicated that the loss making home improvement business (Masters) might become profitable in 2016

Origin Energy has indicated that Australia Pacific LNG project in Queensland is 67% complete. Mirvac Group and the private equity group Blackstone have signed an $826 million real estate agreement. The Australian dollar was little changed after the announcement from FED regarding the cut in bond buying.



S&P ASX 200 Daily Chart (Source – Thomson Reuters)

The top gainers on ASX 200 were:- 



Stock of the Day – AMP (AMP)
 
AMP Limited is an Australasian wealth manager and life insurer. The group comprises AMP Financial Services which owns Australia’s largest financial planning network and AMP capital Investors, a fast growing fund manager with an increasing exposure to Asia. The wealth management group is a diversified and integrated financial services provider with a major wealth management business, life and income protection insurance, a small but growing domestic bank and extensive wealth and insurance operations in New Zealand.
 
AMP steadied the ship with 2013 earnings devoid of negative surprises providing hope through the rough weather in the life insurance business will mitigate during the next few years. Underlying profit of AUD 849 million for 2013 was a modest upside surprise. Total dividend of 23 cents per share for 2013 declined 8% from 2012.



Source - AMP

Despite ongoing challenges in the life insurance industry, management provides some hope that structural and cyclical headwinds will improve during the next two to three years. In our opinion the reassuring full year results and optimistic outlook confirms the strength of AMP’s integrated business model.


AMP Daily Chart  (Source - Thomson Reuters)
 
Excluding wealth protection the industry heavyweight continues to improve underlying performance with earnings up in contemporary wealth management, banking, New Zealand and the legacy wealth management business, AMP capital reported a stable earnings of AUD 99 million, with net outflows in assets under management or AUM and lower performance fees offsetting the upside from a lower cost base. We believe the stock is slightly overvalued at its current price and would review the stock at a later date.

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