Cannabis Stocks surged on Wednesday off of the strength of the first U.S.-based marijuana ETF as investors clamored to grab a piece of the new green market. Marijuana indices across the board made significant gains on a day of record highs for both Wall Street and the Canadian exchanges. MJIC’s Marijuana Index, Solactive’s Medical Marijuana Index, and 420 Investors Cannabis Stock Index all hit record highs again on Wednesday as California’s recreational market jumped off to a shaky but successful start. Positive economic data assisted the news out of California, making it a banner day for investors on both sides of the U.S-Canadian border. Cannabis’ bigger companies such as Canopy Growth (TSX:WEED), Aphria Inc. (TSX:APH), and Aurora Cannabis (TSX:ACB) saw significant gains in their share prices on Wednesday, as did the major marijuana ETF’s. The fundamentals of the cannabis markets are healthy to begin the new year, and with a little bit of caution, should look to grow.
Around The Markets
It was a day of record highs on Wall Street as well as on the Canadian exchanges, as positive economic data and news from the Fed helped continue the markets’ upward trend. Data showing an increase in U.S. factory activity in December, combined with reports of gradual interest rate hikes from the central bank this year pushed the S&P 500 above 2700 for the first time and sent the Nasdaq and Dow Jones Industrial Average to new highs as well. The Toronto Stock Exchange closed out at 16,371.55, a record as well, bolstered by news from Blackberry, along with cannabis stocks out of California.
The Cannabis Stock Index
The Cannabis Stock Index, which is managed by 420 Investor, and examines the medical and recreational markets as a whole hit a new all-time high on Wednesday, a pattern seen since early November. The Index closed the day at 180.02, up 8 percent over yesterday’s close. Year-to-date the Index has seen returns of 26.7 percent.
Solactive North American Medical Marijuana Index
Once again, Solactive’s North American Medical Marijuana Index gained on Wednesday, reaching a new high of 1962.69. The Index climbed a little over 9 percent over yesterday’s close of 1783.45 and has also been on a steady rise since November.
The North American Marijuana Index
MJIC’s North American Marijuana Index continued its upward climb on Wednesday, buoyed by a rising stock market and the opening of California’s recreational adult-use market. It is the perfect storm for cannabis investors as the new year opens to new opportunities in the green market. The Index gained 32.58 points for a 10.49 percent gain. On the U.S. side, the Index saw much smaller increases than it did on Tuesday, most likely reflecting a correction following the opening of the aforementioned market in California. Closing at 105.69, the U.S. Index gained 0.30 points for a 0.28 percent gain. Meanwhile, the Canadian Index continued its impressive rally, as investors up North prepare for nationwide legalized cannabis and thus do not have to worry about federal law like in the U.S. The Index closed at 950.26, rising 137.45 points for a 16.91 percent gain.
After jumping 11 percent to $21.20 yesterday, Horizon’s Marijuana Life Sciences Index ETF had another stellar day on Wednesday, rising $2.13 for a 10.05 percent gain. The Index had a volume of 4535882 and closed the day at $23.33.
ETFMG Alternative Harvest ETF (MJX)
The U.S. listed Alternative Harvest ETF took investors by storm on Wednesday, as news hit the wires that the young fund grew to $164-million in net assets, growing from $6-million in one short week. The fund jumped 6.30 percent on Wednesday closing out at 37.81.
Winners and Losers
Newstrike Resources Ltd. (HIP:CA) closed on Wednesday at $0.930 on higher than average volume trading following some back and forth between Aurora Cannabis and CanniMed Therapeutics over the potential deal between Newstrike and CanniMed. Share prices were up $0.290 for a 45.31 percent gain. Cannabis Sativa Inc. (CBDS) saw significant increases, closing out Wednesday at $9.740. The company gained $2.270 on higher than average volume trading for a 30.39 percent gain.
CV Sciences Inc. (CVSI) was down on Wednesday after announcing their intentions to present at the 2018 Biotech Showcase. The company closed the day at $0.519, down $0.114 for an 18.03 percent loss. Cryptocurrency fan MCIG Inc. (MCIG) closed Wednesday at $0.336. The company fell $0.053 on higher than average volume trading for a 13.74 percent drop.
Stocks to Watch (And Watch Out For)
Friday Night Inc. (CSE:TGIF) (CNSX:TGIF) was the subject of an article by the CannabisFN Media Group (CFN) on Wednesday. The company saw share prices rise 3.8 percent on higher than average volume trading for a $0.0371 gain.
For more on The Marijuana Index, including methodology go to marijuanaindex.com. For more on The Cannabis Stock Index, go to www.newcannabisventures.com/cannabis-stock-index/. For more on Solactive’s North American Medical Marijuana Index, go to solactive.com. For more on Horizon’s Marijuana Life Sciences Marijuana Index ETF, go to horizonsetfs.com/hmmj. For more on the ETFMG Alternative Harvest ETF (MJX) go to http://www.mjxetf.com/.