Cannabis stocks fall across the board as investors lock in recent gains

Cannabis stocks were lower across the board Friday, falling with the broader market as investors locked in some of the week’s gains. The sector is being viewed as a winner in this week’s U.S. midterm elections, where three states approved legalization measures and pro-cannabis governors were elected in several states. The Democratic Party’s success in regaining control of the House is also viewed as a positive, as it improves the likelihood that federal legislation, such as the STATES Act, can pass. Separately, Jeff Sessions resigned as attorney general, removing a firm opponent of the substance. “The midterms delivered several important wins that clearly demonstrate positive voter sentiment with respect to cannabis policy reform and underpin a supportive outlook that should continue to drive momentum for US cannabis equities,” Cormark analysts wrote in a Thursday note. Canopy Growth Corp. was down 5.4%, Valens GroWorks Corp. was down 6.3% and Tilray Inc. was down 2.8%. Aprhia Inc. fell 3% and Hexo Corp fell 6.7%. Aurora Cannabis was down 3.6% . The Horizons Marijuana Life Sciences ETF was down 3.5% and the ETFMG Alternative Harvest ETF was down 3%. Both ETFS were still up more than 3% on the week. The S&P 500 was down 1.1%.

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