Australia's largest retail bank will be safe from today's expected market sell-off as it goes into a trading halt to undertake a large capital raising.
Commonwealth Bank of Australia (ASX: CBA) is looking to raise $5 billion via a rights issue to shore up its balance sheet and announced a 5% rise in cash profit to a record $9.14 billion.
It's a good thing that the bank has gone into a trading halt as the futures market is tipping a 0.7% drop in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) at the open as global markets got spooked by China's decision to lower its currency against the US dollar by a two-decade record of 1.9%.
As it stands, the share price of companies doing a capital raising often falls on the news (particularly those like CBA who price their entitlement at a reasonably large 13% discount to the last traded price) and announcing such a move on a day the market tumbles will exacerbate the pain.
But resource stocks aren't that lucky, particularly energy stocks like Woodside Petroleum Limited (ASX: WPL) as they have to contend with the 4.2% plunge in the West Texas Intermediate (WTI) crude oil price to $US43.08 a barrel.
Iron ore major Rio Tinto Limited (ASX: RIO) will be sharing the pain as the stock trades without its dividend entitlement today and as the iron ore price slipped for a second consecutive day to $US56.22 a tonne, down 0.3%.
It's not only CBA that will be hogging the earnings spotlight. Blood products company CSL Limited (ASX: CSL) posted a net profit of $1.38 billion and is guiding for a 5% increase in net profit for 2015-16.
Meanwhile, auto classifieds website operator Carsales.Com Ltd (ASX: CAR) gave an upbeat outlook for the current financial year as it reported a net profit of $103.2 million and declared a special dividend payment.
A string of other companies are also scheduled to release their profit numbers. This includes energy utility AGL Energy Ltd (ASX: AGL), medical facilities operator Primary Health Care Limited (ASX: PRY) and share registry services group Computershare Limited (ASX: CPU).
Other companies with earnings news on tap are property company DEXUS Property Group (ASX: DXS), aged care facilities operator Estia Health Ltd (ASX: EHE), casino operator Echo Entertainment Group Ltd (ASX: EGP) and online real estate classifieds business REA Group Limited (ASX: REA).
In other news, oil & gas company Beach Energy Ltd (ASX: BPT) will provide a strategy update this morning while consumer financing company FlexiGroup Limited (ASX: FXL) could come under more selling pressure after at least three brokers downgraded the stock following its sneakily done profit warning yesterday.
Finally, property developer Mirvac Group (ASX: MGR) is considering a $450 million capital raising as it looks at buying assets from Investa, according to the Australian Financial Review, and share trading systems developer Iress Ltd (ASX: IRE) has signed a partnership with UK-based Atom Bank.
