As thoughts of corporate tax cuts sent the markets soaring today, The North American Marijuana Index fell, mostly on the backs of Canadian cannabis stocks. News of bolstered support for the Republican tax reform bill in the states had U.S. investors cheering, as the trading week came to a close on Friday. However, record-highs on Wall Street and modest gains up north had no effect on the Canadian sector, as cannabis stocks tumbled downwards after rallying most of the week. The Index closed at 188.47, after an opening price of 190.61, for a .24 percent loss to end the week.
United States Index
What little bright spots the Index saw on Friday came from U.S. investors, as the United States Marijuana Index gained 1.01 percent on Friday. U.S. Senator Marco Rubio signaled his support for the Republicans’ divisive tax bill on Friday, a sign that the bills final passage may be imminent. Both the Dow Jones Industrial Average and the S&P 500 closed on Friday with record highs. The United States Marijuana Index followed suit, closing out Friday at 66.92, for a .67 gain.
Moderate gains on the Toronto Stock Exchange’s S&P/TSX composite meant little to Canadian cannabis stocks, as the Index fell .50 percent on Friday. It was a bland day of trading up north, with the loonie closing down on Friday, as cannabis stocks reversed their week-long rally. The Canadian Marijuana Index opened the day trading at 500.61, falling 2.50 points throughout the day to close out the week at 493.72. Still, it was a small bump in an otherwise positive week of trading.
Winners and Losers
Abattis Bioceuticals Corp. (CSE:ATT) enjoyed a banner day on the market, as the company closed on Friday with share prices up at $0.439 per unit. Trading volume was higher than average on Friday, as prices rose 11.22 percent. After today’s announcement that the board of directors declared 2017 fourth quarter dividends of $0.25 per share of common stock, Innovative Industrial Properties, Inc. (NYSE:IIPR) saw share prices rise 9.73 percent. The company closed Friday at $24.80 per share, on higher than average trading volume. Marijuana Company of America (OTC:MCOA) had a good day on Friday as well, with share prices climbing 5.51 percent, to close out at $0.0355 per share.
Conversely, Aero Grow International, Inc. (OTC:AERO) had a less than stellar day on the market today, as prices fell 7.69 percent on higher than average trading volume. The company closed on Friday with share prices at $2.40 per unit. News of Golden Leaf Holdings Ltd.’s (CSE:GLH) latest Chalice Farms dispensary had ill effects on company stock, as prices dropped 6.87 percent Friday on lower than average trading volume. Final trading price was $0.2263 per share. WeedMD Inc. (TSXV:WMD) saw prices fall 6.94 percent on Friday, a day after announcing a deal to supply retirement home provider Jarlette Health Services. The company closed the day at $1.797 per share on lower than average trading volume.
The Five-Day Marijuana Index
Despite Friday’s losses, it was another banner week for the North American Marijuana Index, as cannabis stocks continued their growth trend heading into the new year. Investors on both sides of the border are salivating at the soon-to-become reality of wider legalization - first in California, then in Canada. The Index gained almost 9 percent this week as it closed Friday at 188.47. The U.S. and Canadian Indexes each had a great week as well, gaining 5.73 percent and 10.94 percent respectively.
For more on The Marijuana Index, including methodology, go to marijuanaindex.com.