Canadian Marijuana Index Jumps 52% in November, Reaching All-Time High

Canadian Marijuana Index Jumps 52% in November, Reaching All-Time High

Deposit Photos / Petrovich99

By Dan Nicholls

The North American Marijuana Index, a stock index that tracks the top performing cannabis stocks in the U.S. and Canada, increased 41% in November.

The North American Marijuana Index is a combination of the U.S. Marijuana Index and the Canadian Marijuana Index.
 

U.S. Marijuana Index

The U.S. Marijuana Index increased 27% in November, its largest gain so far in 2017, driven by positive momentum in the Canadian market as well as investors’ anticipation of the upcoming California recreational market opening in January. Fifteen out of the 17 constituents gained during the month.

The broader U.S. market also saw strong results in November with the Dow Jones Industrial Average ending the month up 3.8% and the Russell 2000 up 2.8%.

Average volumes of all constituents on the U.S. Marijuana Index (excluding GWPH) more than doubled in November compared to October.

MJIN_US-Index-November-Web

Canadian Marijuana Index

After gaining 15% in October, the Canadian market continued its rally as the Canadian Marijuana Index increased 52% in November, the largest single month increase since the index’s creation. This compared to a 0.5% increase in the S&P/TSX Venture Index, Canada’s leading small-cap index. The Canadian Marijuana Index is now up 97% over the last three months.

Fifteen of the 18 companies on the Canadian Marijuana Index gained more than 10%, with two outstanding performers: Namaste Technologies Inc. (CSE:N) and Aurora Cannabis (TSX:ACB) gained 360% and 162%, respectively.

Several major pieces of news headlined the month:

  • On November 7th, Manitoba introduced new adult-use cannabis regulations. The Canadian Marijuana Index increased 4.3%.
  • On November 10th, Alberta became the first province to plan private cannabis distribution rather than a government-run store. The Canadian Marijuana Index gained 4.7%.
  • On November 16th, Aurora Cannabis (TSX:ACB) made an unsolicited proposal to acquire CanniMed Therapeutics (TSX:CMED). The Canadian Marijuana Index gained 2.3%.

MJIN_Canadian-Index-November-Web

Marijuana Stock Universe

The Marijuana Stock Universe, which includes all U.S. and Canadian stocks with an involvement in the cannabis or hemp industry, saw an average increase of 34% in November. Nine out of 11 sectors posted gains for the month.

MJIN_Stock-Universe-November-Web

For more information on November’s results, please click the link below for a downloadable PDF: Marijuana Index – November 2017 Summary Report.

Dan Nicholls, CFA, is Vice President of the MJIC Marijuana Index.

Guest Contributor designates a writer who is guest publishing content with MJINews.

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