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Marijuana stocks suffered heavy losses on Monday and headed for their worst five-session slide in more than eight months, as total legalization in Canada appeared to have erased the sector, despite early signs of strong demand.
The ETFMG Alternative Harvest Exchange Traded Fund
MJ -8.93%
Afternoon trade fell 9.4%, with 28 of the 37 components losing ground and 16 declining losing more than 5%. The ETF lost 20.1% in a five-game losing streak, the biggest such loss since the creation of the ETF on 3 December 2015.
The sector continues to lose ground since adult marijuana use became fully legal in Canada on October 17th. In the two months preceding full legalization, the cannabis ETF had risen by 46%.
Do not miss: Cannabis is now legal in Canada, but marijuana makers are expecting a difficult start.
Among the most active weed stocks on Monday, Aurora Cannabis Inc.
ACBFF, -11.30%
CBA -11.07%
12.8%, one day before the start of trading on the Vancouver Medical Cannabis Society market, on the New York Stock Exchange, under the symbol "ACB".
Shares of Canopy Growth Corp.
GSC -10.27%
CANNABIS, -10.41%
down 12.1%, Cronos Group Inc.
CRON, -11.37%
fell 12.5%, New Age Beverages Corp.
NBEV, -16.27%
plunged 15.9% and Tilray Inc.
TLRY, -14.65%
lost 16.0%.
Beer Manufacturer Corona Constellation Brands Inc.
STZ, -1.23%
which caused a sensation by increasing its stake in Canopy Growth by $ 4 billion in August, its shares lost 1.1%.
Shares of India Globalization Capital Inc.
IGC -16.14%
dropped 17.7%. It has lost half of its value in the last five days and has lost 80% since closing, reaching its highest level in eight years: $ 13 on October 2nd.
Read also: All potential red flags for investors in IGC, the pot stock that jumped 1000% in three months.
Shares of Net Element Inc.
DO NOT, + 48.38%
The bulls were particularly amazed as they climbed 41.9% in volume after the Florida-based financial technology company announced that its subsidiary Unified Payments had launched a "secure and compliant" payment processing offer for the sector. legal cannabis. The volume of transactions reached more than 9 million shares, compared to a daily average of 81,000 shares.
The mbadive sale of the sector comes despite early indications of strong demand since full legalization.
"While it was difficult for provinces and experts to predict exactly what cannabis demand would be when legalized, actual demand far exceeds all reasonable expectations," said Hexo Corp., Quebec-based a statement. The company added that all its orders had been delivered since its full legalization and that its stocks had been rebuilt.
HYYDF, -12.10%
slipped 12.9% on Monday.
Elsewhere, shares of MedMen Enterprises Inc.
MMNFF, -12.68%
lost 13.4% after the full-service cannabis company reported acquiring a clinic in San Jose, California, for an undisclosed amount. The news follows the announcement earlier this month by the company of a $ 682 million buyout of PharmCann to mark the largest deal ever with a US company.
"MedMen continues to grow its market share in California, the largest and most advanced cannabis market in the world," said General Manager Adam Bierman. "Our next phase of growth will be focused on deepening the markets in which we are already present and where brand capital is already built."
Shares of Green Organic Dutchman Holdings Ltd.
TGODF, -14.34%
down 14.5%, Aleafia Health Inc.
LEAF, -15.53%
dropped 16.9% and Aphria Inc.
APHQF, -12.19%
decreased by 12.6%.
At the same time, the marijuana ETF was still up 24.6% over the last three months, while the S & P 500 index
SPX, -0.26%
slipped 1.4%.
Check-out: MarketWatch's comprehensive coverage of the cannabis sector, including profiles of a number of key players
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