Last week, lawmakers in Canada approved Bill C-45, which legalizes cannabis in Canada, with a 52–29 vote. This approval was anticipated, and cannabis stocks rallied last week. The Horizons Marijuana Life Sciences ETF (HMMJ) rose about 7% between the closing on June 15 and the closing on June 22. Let’s look at how other stocks reacted in this period.
Cannabis stocks pop
All ten cannabis stocks and the four ETFs in the above chart ended in the positive territory week-over-week with MedReleaf (MEDFF) gaining as much as 18.8% to close at 30.7 Canadian dollars. Both Canopy Growth (CGC) and Aurora Cannabis (ACB) (ACBFF) rose 10.3% each to close at 43.4 and 10.0 Canadian dollars, respectively.
Aphria (APHQF) was not far behind with a weekly gain of 9.3% to close at 12.7 Canadian dollars, while Hydropothecary rose about 9.1% and closed at 5.4 Canadian dollars. CannTrust followed with a gain of 8.3% to ~9 Canadian dollars, while Organigram rose about 7.3% and closed at 5.7 Canadian dollars. Emerald Health rose 6.7% to 4.2 Canadian dollars last week. Supreme Cannabis rose by 6.2% to 1.7 Canadian dollars, while Cronos (CRON) rose just 2.5% to 9.6 Canadian dollars.
Last week’s impressive gains also pushed some of the cannabis stocks into positive YTD (year-to-date) returns territory. Canopy Growth emerged as the top gainer with a 34% return YTD, followed by Organigram at 27% this year. Hydropothecary also gained about 20%, while MedReleaf was up 14% YTD.
Stocks that remained in the negative territory include Aphria and Emerald Health, which were down 37% each. Supreme Cannabis is down by 36% YTD. Aurora Cannabis has also seen a loss of 15.5%.