Weed week: COVID-19 and cannabis don’t mix, although the results aren’t all bad
Link copied to
The latest results are in, and Australia’s listed cannabis sector hasn’t escaped the carnage on global stock markets over the past couple of weeks.
Of the 32 companies tracked by Stockhead, 16 posted a loss with nine witnessing double-digit falls. There were seven winners over the week while nine stocks were unchanged.
But on a weekly basis, the sector has steadied slightly from the previous week when virus fears first took hold, and no less than 25 stocks on the list lost ground.
While local cannabis plays continue to chip away at expanding market share in the medicinal space, last year’s global cannabis bear market is likely to still be fresh on the minds of stock investors amid the ongoing pivot away from risk assets.
Below is a summary of weekly and annual price performance for ASX-listed cannabis stocks.
Scroll or swipe to reveal table. Click headings to sort.
The end of February marks the end of December reporting season. And among the double-digit losers in percentage terms, a number of falls appeared to be driven by poor market reactions to half-year and full-year reports.
But while Australia’s cannabis sector is yet to turn around its fortunes from the broader market selloff, some analysts are still optimistic about the year ahead.
Cannabis research firm FreshLeaf Analytics is forecasting sales of medicinal cannabis in the local market will triple in 2020 and reach $150m.
It also expects to see an important regulatory development, where certain Cannabidiol (CBD) products will be approved for over-the-counter sales at pharmacies.
And last week Mark Bernberg, the Sydney-based cofounder of cannabis investment firm The Green Fund, highlighted three ASX-listed cannabis biotechs that he says are positioned for further growth.