The sell-off continues
On February 5, 2018, the global market extended its selling spree with the S&P 500 Index falling 4% and the TSX (Toronto Stock Exchange 300 Composite Index) falling 2%. It was a continuation of that week’s sell-off when the market got spooked by the possibility of an increase in inflation causing interest rates to rise. To know how cannabis stocks performed, read Why Cannabis Stocks Fell in the Week Ended February 2.
Healthcare sector falls
Under the S&P 500 Index, the financials sector emerged as the biggest loser, falling 4.7%, followed by the healthcare sector, which fell 4.6%. Under the TSX, the consumer cyclical sector emerged as the top loser, falling 2.2%, while the healthcare sector was the fifth biggest loser, falling 1.7%.
Cannabis ETFs and stocks
While the market continued its rout, cannabis stocks held up on February 5, as you can see in the above chart. The Horizons Marijuana Life Sciences Index ETF (HMLSF) rose 1.9% that day, while the Horizons Marijuana Life Sciences ETF rose 2.6%. However, the ETFMG Alternative Harvest ETF (MJX) fell 0.7%.
Among the cannabis companies, Aurora Cannabis (ACB) (ACBFF) emerged as the top gainer, rising 9% on February 5. MedReleaf (LEAF) and Cronos Group (PRMCF) both rose 7%, while Emerald Health Therapeutics (EMHTF) rose 4%. Aphria (APH) and Supreme Cannabis (SPRWF) both rose 1%. Canopy Growth (WEED) and Hydropothecary Corporation (HYYDF) ended almost flat.
The cannabis industry continued to see positive developments on February 5, which may have fueled investor confidence. Aurora Cannabis, for example, announced another investment ahead of the legalization of recreational cannabis in Canada. Let’s look at that in more detail in the next part.