Marijuana Index Gained 61% in December in Anticipation of California Market

Marijuana Index Gained 61% in December in Anticipation of California Market

Pixabay / geralt / CC0 Creative Commons

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 61% in December.

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 gained 50% in December, including a 35% jump in the last week of the year, fueled by investors’ anticipation of the upcoming California recreational market opening in January. Sixteen out of the 17 constituents saw gains during the month.

The broader U.S. market saw mixed results in December with the Dow Jones Industrial Average ending the month up 1.8% and the Russell 2000 down 0.6%.

Overall, the U.S. Marijuana Index ended 2017 up 18% after shaking off its negative performance in the first three quarters of the year to close out Q4 up 85%.


Canadian Marijuana Index

After gaining 52% in November, the Canadian market rallied higher in December as the Canadian Marijuana Index gained 65%, the largest single month increase since the index’s creation. This pushed the Canadian Index to an all-time high.

This compared to a 7.8% increase in the S&P/TSX Venture Index, Canada’s leading small-cap index.

All constituents on the Canadian Marijuana Index increased during December, with 14 out of the 18 constituents gaining more than 20% and eight constituents gaining more than 50%.

After increasing 188% in Q4, the Canadian Marijuana Index ended 2017 up 160%.


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 75% in December. All 11 sectors increased for the month, with two sectors, Hemp Products and Real Estate, increasing more than 100%.


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