Leading marijuana stocks dropped up to 19 percent on Monday during a bad day for the sector
Monday was a rough day for cannabis investors. According to MarketWatch, it was the worst-ever day in the sector. Stocks slipped overnight, reaching a new low point in more than eight months. It shows that full legalization in Canada had a bubble-bursting effect on marijuana stocks.
Major cannabis exchange-traded funds including ETFMG Alternative Harvest fell 9.4 percent by close on Monday. Of the fund’s 37 components, 28 took a loss; 16 of which dropped over five percent. Overall, Alternative Harvest has suffered a five-session losing streak that marks its most significant decline in nearly three years.
Leading cannabis stock Aurora Cannabis Inc. fell 12.8 percent on Monday. It is slated to begin trading on the New York Stock Exchange on Tuesday under the symbol ACB. Canopy Growth shares also lost ground with an 11 percent slump While Cronos Group fell further at 12 percent.
New Age Beverages, India Globalization Capital, and Tilray slipped down some of the steepest slopes on Monday. All three companies fell 16 percent. Fir IGC, the fall represented a loss of roughly half its value. The company’s shares have fallen 80 percent so far this month since their eight-year peak at $13 on October 2.
Aleafia Health Inc. was the biggest loser of the day with a loss of 19 percent.
The drop in stocks and sector-wide sell-off came despite the overwhelming demand for recreational cannabis since sales launched on October 17. Experts say the demand far exceeded any reasonable expectations and most retailers have already replenished their stock since launch day.