Total equity financings fell in the second quarter according to a report from the Investment Dealers Association of Canada.
The IDA says equity financings totalled $10.6 billion in the second quarter of 2005, down 15% quarter-over-quarter and 8% year-over-year.
For the first six months this year, total financings were up 8% in value, but down 6% in deals from the same period in 2004.
Investor worries over record crude oil prices, looming interest rate hikes and some consolidation from Corporate Canada contributed to the sluggish financing backdrop in the period, the IDA says.
The one exception was income trusts, which soared to record territory in the second quarter. Income trust unit issuance reached $5.7 billion in the second quarter, up 3% quarter-over-quarter and 40% from the same period last year ago.
Meanwhile, trading volume on the Toronto Stock Exchange and TSX Venture pulled back from the first quarter to 18 billion shares, a decline of 19% from the first quarter.
Other highlights from the IDA’s Review of Equity New Issues and Trading Second Quarter 2005:
- Common share equity issuance stood at $3.7 billion in the second quarter, down 12% from Q1 2005 and down 32% from the same period a year ago.
- Resource-based financings totaled $2.2 billion in Q2, down 12% from Q1 2005 and down 13% from Q2 2004.
- Preferred share financing stood at $673 million in Q2, down 68% quarter-over-quarter, and down 32% from the same quarter in 2004.