The pace of equity market financings in Canada in the fourth quarter of 2002, while still down from a strong second quarter, continued to show improvement, according to a report issued by the Investment Dealers Association of Canada on Wednesday.

According to the Review of Equity New Issues and Trading, new equity issuance was higher in number, but not value, in the quarter. There were 588 deals totalling almost $4 billion during the quarter, compared with 485 deals totalling $5.2 billion in the fourth quarter of 2001.

The IDA reports that common equity underwriting was strengthened by several large offerings. Seventeen of the 588 common equity issues were over $50 million, accounting for $2.7 billion, or 67%, of the total issuance.

Compared to the third quarter of 2002, equity IPO activity was lower in number, but higher in value at $546 million. This was due to two large offerings, which accounted for 90% of IPO issuance. The TSX Group Inc. IPO was valued at $341 million, while the RONA Inc. IPO was valued at $150 million.

Trust unit issuance continued to be active. Total issuance was $3 billion in the fourth quarter, with 11 issues over $100 million, accounting for $2.1 billion, or 70%, of trust issuance.

Trading volumes on Canadian exchanges increased from the third quarter of 2002. Volume on the Toronto Exchange rose by 21% , while volume on the TSX Venture Exchange jumped 27%.