The pace of equity market financings in the third quarter was down 11% from the second quarter, according to a report released today by the Investment Dealers Association of Canada.

Despite this slowdown, the Review of Equity New Issues and Trading shows that total issuance is up 10% for the first three quarters over the same period in 2003, driven by an impressive 45% increase in common equity issues.

Total equity financing activity was $10.6 billion in the third quarter, down 11% from the second quarter, but up 10% for the first nine months over the same period in 2003.

Issuances of income trust units, limited partnerships and preferred shares were down from the second quarter, but activity for the year remains at high levels.

Common share equity issuance remained robust, up 17% from the previous quarter and 45% for the first three quarters over last year.

Secondary common share financing hit a 10-year high at $4.8 billion in the third quarter, up 110% from the second quarter, thanks to the government’s record $3.1 billion sale of Petro Canada.

The resources sector continued to dominate, accounting for 83% of the common equity financings.

Income trust unit issuance was $4.0 billion in total, up 47% over the same quarter last year. Income trust IPOs, at $1.8 billion, accounted for 70% of the equity IPO market.

Volume and value of stocks traded on the TSX was down 11% and 14% respectively from the second quarter — the lowest level since the fourth quarter in 2003.