Marijuana Index Dips 3% in June as Canadian Stocks Continue to Decline

Marijuana Index Dips 3% in June as Canadian Stocks Continue to Decline

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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 3% in June as continued losses in Canada closed out the Index’s second worst performing quarter since its inception in January 2015.

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

U.S. Marijuana Index

After consecutive months of double digit losses in April and May, the U.S. Marijuana Index remained flat in June. The broader U.S. market saw positive gains with the Dow Jones Industrial Average ending the month up 1.6% and the Russell 2000 increasing 3.3%. Overall, the U.S. Marijuana Index decreased 25% in Q2 and is down 29% for the year.

Volumes have continued their downward trend as the average constituent on the U.S. Marijuana Index (excluding GWPH) traded only $206,000 per day, the fourth consecutive month of declines.

Three constituents on the U.S. Marijuana Index gained more than 30% during the month: United Cannabis Corp. (OTCQB:CNAB), CannaRoyalty Corp. (CSE:CRZ) (OTCQX:CNNRF) and General Cannabis Corp. (OTCQB:CANN).



Canadian Marijuana Index

Sentiment in the Canadian market remains weak as the Canadian Marijuana Index decreased by 11% in June. This compares to a 4% decrease in the S&P/TSX Venture Index, Canada’s leading small-cap index.

After increasing 17% in January and February, the Canadian Marijuana Index has now decreased four straight months. The Canadian Marijuana Index ended Q2 down 26%, the worst performing month in its history.

Only two out of 12 constituents on the Canadian Marijuana Index experienced gains for the month: Canopy Growth Corporation (TSX:WEED) (OTC Pink:TWMJF) and Aphria Inc. (TSX:APH) (OTCQB:APHQF).



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 7% in June. Only the Investing & Finance sector and the Marijuana Products sector increased for the month.


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