Aug 5 (Reuters) - GMP Capital Inc , one of Canada’s largest independent investment dealers, reported a 79 percent drop in quarterly profit, hurt by lower levels of underwriting activity and reduced institutional trading volumes.
GMP’s second-quarter income was C$5.1 million ($5.2 million), or 4 Canadian cents per basic share, compared with C$24.1 million, or 32 Canadian cents per basic share.
Revenue fell 41 percent to C$67.6 million .
“In our capital markets business, revenue was lower than our expectations and was negatively impacted by reduced investor confidence and declining equity market valuations,” Chief Executive Harris Fricker said in a statement.
GMP Capital, along with Desjardins Financial Group, Dundee Capital Markets and Manulife Financial , has agreed to join Maple’s C$3.6 billion (US$3.7 billion) bid for the TMX Group . ($1 = 0.975 Canadian Dollars) (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Viraj Nair)