Cannabis stocks saw weak gains on Monday as Wall Street rallied following last week’s near panic that experts dubbed a “market correction.” Still, incremental gains in the sector were pared by minimal losses among individual pot stocks as investors remained patient in early week trading. Monday also saw the start of new seeds planted in the sector as the Evolve Marijuana ETF (TSX:SEED) launched to great fanfare in Toronto. President Trump’s new budget appeared to give U.S. investors a new sense of confidence following the markets steepest drop in almost two years.
Wall Street bounced back on Monday on the announcement of the new Trump budget, alongside strong technical market indicators that momentarily put a sense of ease back into the exchanges. Following an anxiety-inducing 1000 point drop last week, the Dow Jones Industrial Average climbed 1.7 percent to close out the day at 24,601.27. Both the Nasdaq and the S&P 500 showed equally impressive gains on Monday. Not to be outdone, Canada’s main stock index jumped 200 points as well, indicating to some that global markets were settling down following last week’s “correction.”
Still, others were hesitant to call an end to the market correction. “It’s too soon to tell if it’s a counter trend rally that’s sustainable,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia in an interview with Reuters.
The North American Marijuana Index dragged itself across the finish line on Monday, climbing 1.46 points, a gain of 0.52 percent to end the day at 281.07. U.S. cannabis stocks and their Canadian brethren up north each saw minimal gains respectively, with the former gaining .95 percent and the latter .34 percent.
The North American Marijuana Index (c) The Marijuana Index www.marijuanaindex.com
A quiet day on the marijuana markets meant small gains for pot stocks but also meant small losses as well. MPX Bioceutical Corporation (MPX:CNX), Cannabics Pharmaceuticals Inc. (CNBX ), and CannTrust Holdings Inc. (TRST:CNX) were the top gainers in the sector on Monday, with no one gaining more than 10 percent for the day. Meanwhile, on the other end of the spectrum, Solis Tek Inc. (SLTK) and MariMed Inc. (MRMD) saw the industries most significant losses for the day. Cannabis powerhouse Canopy Growth Corp. (WEED) lost 4.51 percent on Monday.
Other indices fared similarly on Monday, with Solactive’s North American Marijuana Index jumping 3.95 points for a 0.26 percent gain and their Emerging Marijuana Growers Index climbing 3.60 points for a 0.43 gain.
Solactive’s North American Marijuana Index Source: solactive.com
Monday also marked the launch of a new marijuana ETF, the Evolve Marijuana ETF, which closed its first day on the TSX at CAD$19.99 per share. Raj Lala, President and CEO, Evolve ETFs celebrated the occasion by ringing the opening bell on the Toronto Stock Exchange. When asked about the fund, Lala told the Financial Post that two factors helped to decide its direction, the company’s previous funds, and the status of cannabis in the United States. “Until that’s all sorted out we thought it made sense to invest in the global opportunities,” he said.
Evolve ETF Opens The TSX Source: TMX Group Limited
Other major cannabis funds split the day, as the ETFMG Alternative Harvest ETF (MJX) fell on Monday, losing $0.62 per share for a 1.92 percent loss. The fund closed the day at $31.59 per share. Meanwhile, the Horizons Marijuana Life Sciences ETF (HMMJ.TO) climbed $0.05 per share for a 0.27 percent gain. That fund closed the day at $18.81 per share.
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