Equity financings remained robust and at historically high levels at $12.6 billion in the first quarter of 2006. Although down 3.3% quarter-over-quarter, financings were up 0.8% year-over-year.

The quarterly results were released on Tuesday in the Investment Dealers Association of Canada’s quarterly report, Review of Equity New Issues and Trading. This year’s first quarter results follow three consecutive years of record-breaking activity. On the trading front, active investors in the first quarter pushed the S&P/TSX composite index and trading volume to all-time highs.

Once again, common equity and income trust financings remained the most popular financing vehicles in Canada during the quarter. However, the quarter witnessed a pronounced change in the financing climate. Last year’s red-hot income trust market appears to have cooled off in the first quarter. Although the trust party may not be over, there are growing signs that growth may be winding down.

Highlights of first quarter equity new Issues and trading

– Common share equity issuance stood at $6.57 billion in Q1 2006, down 21.6% from Q4 2005, but up 52.5% from Q1 2005.
– Income trust unit issuance totaled $3.94 billion in Q1 2006, up 28.1% from Q4 2005, but down 28.5% from Q1 2005.
– Preferred share financing was $0.93 billion in Q1 2006, down 24% from Q4 2005 and down 55.2% from Q1 2005.
– Volume on the TSX was 22.4 billion in Q1 2006, up 26.6% from Q4 2005 and 32.6% from Q1 2005.