Australian Indexes Drop 1.3%, Commonwealth Bank Launches A$5 B Rights Issue

Marcus Jacob
12 Aug, 2015
New York City

Australian market indexes declined for the second day and Aussie dollar firmed up after China devalued the yuan. Commonwealth Bank said quarterly net rose 5% and launched rights issue of A$5 billion.

[R]5:30 PM Sydney, Australia – Australian market indexes declined for the second day and Aussie dollar firmed up after China devalued the yuan. Commonwealth Bank said quarterly net rose 5% and launched rights issue of A$5 billion.[/R]

Australian market indexes dropped more than 1% for the second day in a row after China devalued the yuan.

Australian dollar closed at 72.61 U.S. cents and in stock trading turnover jumped to 913 million shares worth $5.9 billion.

At close, the ASX 200 Index dropped 91.10 or 1.7% to 5,382.10 and the broader All Ordinaries Index slumped 89.60 to 5,383.50.

In commodities trading, gold gained US$13 to US$1,113 an ounce and Brent crude slid 0.29 cents to close at US$48.89 a barrel.

Australian Stock Movers

AGL Energy Ltd slumped 1.1% to $16.41 after the gas and electricity retailer said total revenues in the year ending in June jumped 2.2% to $10.68 billion from $10.45 billion in a year ago period.

Net profit in the year tumbled 61.8% to $218 million compared to $570 million and diluted earnings per share declined to 33.3 cents from 98.2 cents in the same period a year ago.

The utility retailer recognizes impairment loss of $275 million in the group operations in respect of the Gloucester Gas Project.

Commonwealth Bank of Australia was halted at $82.12 the banking services provider reported interest income in the year ending in June increased 1.3% to $34.10 billion from $33.65 billion in a year ago period.

Net profit in the year climbed 5% to $9.06 billion compared to $8.63 billion and diluted earnings per share jumped to 531.6 cents from 521.9 cents in the same period a year ago.

The bank launched a $5 billion rights issue of 1 new share for every 23 shares held at an offer price of $71.50 per new share.

The new shares will be issued at a 10.5% discount to the last closing price.

Carsales.Com Ltd plunged 6.4% to $10.08 after the online car seller said total revenues in the year ending in June surged 32% to $311.8 million from $235.6 million in a year ago period.

Net profit in the year jumped 8% to $103.2 million compared to $95.5 million and diluted earnings per share increased to 43.2 cents from 40.2 cents in the same period a year ago.

Echo Entertainment Group Ltd dropped 2.3% to $4.98 after and gambling company stated total revenues in the year ending in June soared 18.9% to $2.14 billion from $1.80 billion in a year ago period.

Net profit in the year climbed 59.3% to $169.3 million compared to $106.3 million and diluted earnings per share gained to 11 cents from 8 cents in the same period a year ago.

Primary Health Care Limited soared 4.3% to $4.64 after the healthcare company said revenues in the year ending in June jumped 6.2% to $1.62 billion from $1.52 billion in a year ago period.

Net profit in the year soared 19.2% to $136.5 million compared to $114.5 million and diluted earnings per share increased to 26.7 cents from 22.7 cents in the same period a year ago.