Cannabis stocks fell for a second straight day on Thursday as frenzied investors in a panicked sell-off forced analysts on Wall Street to label the broader markets as in an official correction. Inflation and other worries saw the Dow Jones Industrial Average plunge in late-afternoon trading, losing over 1,000 points, with the Nasdaq and the S&P 500 showing significant losses as well. The North American Marijuana Index fell 8.77 points, a 3.06 percent decline to close out the day at 278.28.
Canadian markets fell as well on Thursday, as up in Toronto the S&P/TSX composite index dropped 264.97 points, or 1.73 percent, closing the day at 15,065.61. It was more bad news for Canadian pot stocks that earlier this week learned in a live televised Senate hearing the country’s July 1 timeline for legalization might be pushed back. According to Health Minister Ginette Petitpas Taylor, provinces will require two to four months of preparations following Royal Assent, which has yet to occur.
News of the delay sent Canadian cannabis stocks plunging themselves the following day, with Thursday's market hysteria adding to the volatility. The Canadian Marijuana Index fell 25.20 points on Thursday, a drop of 3.23 percent to close out the day at 755.83. The U.S. Index fared equally as well, dropping 2.37 percent on Thursday.
Solactive’s two marijuana indices took a nosedive on Thursday as well, in the most definite sign yet that the recent promise of the marijuana markets has been thrown into flux by dominant government forces. Between Jeff Sessions renewed “War on Weed” and Canada’s inability to pass meaningful legislation, cannabis’ own market correction is starting to show signs of panic. The Emerging Marijuana Growers Index fell 9.92 points for a 1.21 percent loss, while the North American Marijuana Index fell 26.53 points for a loss of 1.71 percent.
Cannabis funds fared no better on Thursday, with the two most prominent ETFs in the industry posting losses for the day. The ETFMG Alternative Harvest ETF (MJX) fell $0.62 per share. It was a 1.92 percent loss, leaving the fund at $31.59 per share for the day. Meanwhile, the Horizons Marijuana Life Sciences ETF (HMMJ.TO) dropped $0.28 per share, declining 1.50 percent to close the day at $18.43 per share.
Meanwhile, Around The Industry
Aurora Cannabis Inc. (TSX:ACB) announced their second quarter 2018 fiscal results. The company brought in $11.7 million in revenues, a 201 percent increase over the same quarter last year… Future Farm Technologies Inc. (CSE:FFT) (OTC:FFRMF) now has a 40 percent ownership stake in five Puerto Rican marijuana dispensaries… Emerald Health Therapeutics, Inc. (TSX-V:EMH) entered into an $18 million prospectus sale… Invictus MD Strategies Corp. (TSXV:IMH) announced their Acreage Pharms Ltd. facility is nearly finished with its phase two construction.