The US marijuana index saw higher volume in April, while the Canadian one continued trending downward, according to data from the Marijuana Index.
The US index saw a 19-percent increase last month thanks in part to former Speaker of the House John Boehner’s announcement that he would be joining the advisory board of cannabis operator Acreage Holdings, reversing his past stance on the drug.
“Six constituents gained more than 20 [percent] and 10 companies overall gained more than 10 [percent],” the Marijuana Index wrote.
Over the border, the Canadian index didn’t fare as well during April. The Canadian index saw a 9-percent decrease, while 80 percent of its constituents operated in the red. This index is comprised of 24 constituents and covers a wide range of cannabis stocks.
Meanwhile, the overall North American Index, which is a combination of the two indexes, managed a 3-percent increase during the month.
“Canada’s stock market experienced mix results in April, with the S&P/TSX Venture Index, Canada’s leading small-cap index, decreasing 1.6 [percent],” said the Marijuana Index. “The average trading volume of constituents on the Canadian Marijuana Index decreased 16 [percent] in April.”
Two Canadian producers most active stocks in index
GW Pharmaceuticals (NASDAQ:GWPH) was the most active American stock in the index. The company is working on an investigational cannabidiol (CBD) oral solution known as Epidiolex; it is aimed at treating seizures associated with Lennox-Gastaut syndrome and Dravet syndrome.
The company’s movement can be credited to its receipt of a unanimous recommendation for the approval of its New Drug Application from the Peripheral and Central Nervous System Drugs Advisory Committee of the US Food and Drug Administration. If approved, this would be the first cannabis-based treatment federally approved by the agency.
During April, two of the top cannabis ETFs available to investors saw little to no gains. The Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ) increased in value by a marginal 0.98 percent, while the Evolve Marijuana ETF (TSX:SEED) decreased 1.9 percent, representing a C$0.33 loss for investors.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.