Overall, the cannabis sector fell on April 9. The Horizon Marijuana Life Sciences ETF (HMMJ) lost almost 2.5% of its value by mid-day, while the ETFMG Alternative Harvest ETF (MJ) lost ~1.7% during the day.
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April is turning out to be relatively bearish for the cannabis sector. HMMJ and MJ have lost ~3.4% and 3.2%, respectively. These two ETFs lost ~2.2% each in March.
What’s causing the slump?
The cannabis sector has seen more volatility compared to the market. The market has been trading cautiously following warnings about a global slowdown. Early this morning, the IMF cut its target for global growth, which fueled more concerns about growth in the equity market.
CannTrust (CTST) emerged as the biggest loss around mid-day. CannTrust stock lost nearly 5.2%. The stock continued to see selling pressure following its earnings, which disappointed investors. OrganiGram (OGRMF) fell ~4.9%, while Slang Worldwide (SLNG) fell ~4%.
HEXO (HEXO) was also trading in the negative territory this week with a decline of 3.9%. Aphria (APHA) fell 3.3% during the first half of the year. While these stocks have declined, their valuations have also fallen. To learn more, read Aurora Cannabis’s Valuation Compared to Its Peers.