Marijuana Index Decreased 11% in August, Cancelling Out July’s Gains

Marijuana Index Decreased 11% in August, Cancelling Out July’s Gains

Deposit Photo / jamdesign

By Dan Nicholls

 
The North American Marijuana Index, a stock index that tracks the top performing cannabis stocks in the U.S. and Canada, decreased 11% in August.

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 decreased 13% in August. Losses were heavily correlated across the U.S. Marijuana Index as only four companies experienced gains for the month: GrowGeneration Corp. (OTCQB:GRWG) gained 11%, Americann Inc. (OTCQB:ACAN) increased 5%, Solis Tek Inc. (OTCQB:SLTK) gained 3%, and Terra Tech Corp. (OTCQX:TRTC) ticked up 1%.

The broader U.S. market saw mixed results in August with the Dow Jones Industrial Average ending the month up 0.3% and the Russell 2000 down 1.4%.

In the last month of the summer doldrums, average volumes of all constituents on the U.S. Marijuana Index (excluding GWPH) decreased 35% compared to July.

MJIN_US-Index-0817-Web

Canadian Marijuana Index

The Canadian market also performed poorly in August, as the Canadian Marijuana Index decreased by 9%. This compared to a 0.8% increase in the S&P/TSX Venture Index, Canada’s leading small-cap index.

The negative results were again strongly correlated among the Index’s constituents as 17 of the 18 companies on the Canadian Marijuana Index decreased during August, with 13 companies losing more than 5% and seven companies losing more than 10%. Cronos Group (TSXV:MJN) (OTCPK:PRMCF) was the only constituent with positive gains during the month, increasing 4%.

Average volumes of all constituents on the Canadian Marijuana Index (excluding TSX:WEED) also saw a freefall, decreasing almost 40% for the month.

MJIN_Canadian-Index-0817-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 decrease of 3% in August. Two sectors stand out from the crowd and gained more than 10%: the Other Ancillary sector and the Tech & Media sector.

MJIN_Index-Universe-0817-Web

For more information on August’s results, please click the link below for a downloadable PDF: Marijuana Index – August 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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