(July 20 – 10:50 ET) – The Investment Dealers Association of Canada says Canada’s securities industry continued its strong bull run into 2000 with stellar results from Canadian retail firms. Industry operating revenues were $3.7 billion, breaking fourth quarter 1999 record revenues by 50%, up more than 75% over the first three months of 1999.

In a report on the securities industry performance released today, the IDA says that it has been a record breaking first quarter with operating profit of $1.1 billion, up 87% from last quarter, double the previous 1996 record of $649 million.

The IDA attributes strong results to record trading activity, especially discount and online trading. Canadian stock exchanges report trades totaling $272 billion in the first quarter, an 88% increase over the same period last year. Discount and online trading total revenues increased to $248 million, which is more than three times the $80 million total from the same period last year.

Increased trading activity saw broker commission levels rise too. Compared to the last quarter 1999, commission revenues were up by 80%, and up nearly 90% from the same period a year ago.

Mutual fund industry commission revenues doubled over the previous quarter levels, as gross sales reached a new high of $46.8 billion. However, mutual fund commissions represented only 22% of total commission revenue in the first quarter, down significantly from the 31% share recorded in the first quarter last year.

Reflecting the stellar levels of activity for the stock markets and the mutual fund sector, client cash holdings reached $18 billion in the first quarter 2000, up 8% from the previous quarter, up 32% from a year ago.

January to March 2000 was the most successful quarter for financings in over two years. More than $7 billion of common equity capital was raised in Canada through the first three months of 2000. Investment banking revenues rebounded to finish at $535 million, an increase of 46% over the previous quarter. Initial public offerings accounted for $2.5 billion of the $7.3 billion total financings in the first quarter.

Principal equity trading revenue soared to $366 million in the three-month period ending March 2000, while fixed income trading revenues fell 3% year-over-year.
-IE Staff