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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 -11.27%
It dropped 7.9% in the noon trade, with 25 of the 37 components losing ground and 15 declining losing more than 5%. The ETF lost 18.7% in a five-game losing streak, the biggest such loss since losing 19.2% in the five-session period ended Feb. 2.
The sector continues to lose ground. Marijuana use for adult recreational purposes became fully legal in Canada on October 17. In the two months leading up to full legalization, the ETF on cannabis 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, -16.06%
CBA -15.76%
11.8%, one day before the start of operations on the Vancouver medical cannabis company market, on the New York Stock Exchange, under the symbol "ACB".
Shares of Canopy Growth Corp.
GSC -14.48%
CANNABIS, -13.08%
down 10.7%, Cronos Group Inc.
CRON, -14.01%
fell 9.9%, New Age Beverages Corp.
NBEV, -18.84%
13.9% dived and Tilray Inc.
TLRY, -19.02%
lost 10.8%.
Beer Manufacturer Corona Constellation Brands Inc.
STZ, -0.81%
which caused a sensation by increasing its stake in Canopy Growth by $ 4 billion in August, its shares lost 0.1%.
Shares of India Globalization Capital Inc.
IGC -17.92%
fell 16.3% and has lost about half of its value in the last five years, with a loss of about 80% since its closure to a high of $ 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, + 40.65%
Bulls saw a strong 61.5% increase in volume after Florida-based financial technology firm announced that its subsidiary Unified Payments had launched a "secure and compliant" payment processing offer for the legal industry. cannabis. The trading volume reached 8 million shares, compared with a daily average of around 81,000 shares.
The massive 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, -14.09%
slipped 11.6%.
Elsewhere, shares of MedMen Enterprises Inc.
MMNFF, -10.37%
14.4% 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, -16.18%
down 13.5%, Aleafia Health Inc.
LEAF, -15.53%
dropped 12.0% and Aphria Inc.
APHQF, -14.06%
decreased by 9.4%.
At the same time, the marijuana ETF was still up 26.8% over the last three months, while the S & P 500 index
SPX, -0.39%
slipped 1.7%.
Check-out: MarketWatch's comprehensive coverage of the cannabis sector, including profiles of a number of key players
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