The London Stock Exchange forecast a difficult 2009 in which levels of initial company listings were likely to remain very low, after trading revenue declined in the third quarter amid sharp falls in share prices.
The UK-based bourse operator, which also runs the Milan-based Borsa Italiana, reported revenues of £171m sterling in revenue for the three months to December 31, up 4% on a year earlier.
It said electronic trading volumes in the UK market rose 20% but combined trading revenue in the UK and Italy - which accounted for 38% of total revenue - fell 13%. It said this reflected the sharp downturn in share prices.
During the quarter, money raised on the bourse's markets was up 145% to £29.7 billion, the second highest quarter on record. But the vast majority of that figure - $27.8 billion - was raised through secondary issues.
The LSE said weak market conditions meant new issue activity is expected to remain at very low levels, although the prospects for secondary issues appeared good.
Falling share prices have inhibited non-listed companies from coming to market. By contrast, many listed firms struggling to shore up their capital bases as the economic crisis deepens have chosen to seek fresh funds via new share issues.
