If 2018 was a breakout year for pot stocks, then 2019 was a year to forget.
Not only were share prices hammered, but interest in cannabis stocks, as measured by volume, also subsided. Just take a look at Toronto Stock Exchange data.
In volume terms, a cannabis stock was the most-traded TSX-listed equity on the exchange in 82 out of 251 sessions in 2019, or 33 per cent of trading days. In 2018, when Canada legalized marijuana for recreational use, cannabis stocks were on top in 57 per cent of trading sessions.
The year started on a promising note. Cannabis stocks (and particularly Aurora Cannabis Inc.) were the most heavily traded TSX equity in most sessions through March.
Then came an extended lull, when pot stocks were at the top in only 13 of 126 sessions between April and September. This coincided with a broad slowdown for the industry as profits largely failed to materialize, with Canada’s main pot ETF shedding about half its value.
(A quick guide to the tickers: ACB = Aurora Cannabis; APHA = Aphria Inc.; CRON = Cronos Group Inc.; TGOD = The Green Organic Dutchman Holdings Ltd.; TRST = CannTrust Holdings Inc.; ZENA = Zenabis Global Inc.)
Not riding as high
The following chart shows when a cannabis
stock was the most traded TSX-listed equity
on the Toronto Stock Exchange, by volume
and session, in 2019.
Cannabis
Non-cannabis
Holiday
Mon
Tue
Wed
Thu
Fri
ACB
ACB
ACB
ACB
January
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
APHA
ACB
ACB
ACB
ACB
ACB
ACB
FEBRUARY
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
MARCH
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
CRON
ACB
ACB
ACB
APRIL
ACB
MAY
ACB
ACB
APHA
JUNE
TRST
ACB
JULY
TRST
TRST
APHA
ACB
AUGUST
TGOD
SEPTEMBER
ACB
ACB
ACB
ACB
TGOD
TGOD
ACB
OCTOBER
ACB
APHA
ACB
TGOD
ACB
ZENA
ZENA
NOVEMBER
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ZENA
ACB
ACB
DECEMBER
ACB
ACB
ACB
ACB
ACB
ACB
ACB
MATT LUNDY, THE GLOBE AND MAIL; SOURCE: TMX GROUP
Not riding as high
The following chart shows when a cannabis stock
was the most traded TSX-listed equity on the Toronto
Stock Exchange, by volume and session, in 2019.
Holiday
Cannabis
Non-cannabis
Mon
Tue
Wed
Thu
Fri
ACB
ACB
ACB
ACB
January
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
APHA
ACB
ACB
ACB
ACB
ACB
ACB
FEBRUARY
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
MARCH
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
CRON
ACB
ACB
ACB
APRIL
ACB
MAY
ACB
ACB
APHA
JUNE
TRST
ACB
JULY
TRST
TRST
APHA
ACB
AUGUST
TGOD
SEPTEMBER
ACB
ACB
ACB
ACB
TGOD
TGOD
ACB
OCTOBER
ACB
APHA
ACB
TGOD
ACB
ZENA
ZENA
NOVEMBER
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ZENA
ACB
ACB
DECEMBER
ACB
ACB
ACB
ACB
ACB
ACB
ACB
MATT LUNDY, THE GLOBE AND MAIL; SOURCE: TMX GROUP
Not riding as high
Each green square shows when a cannabis stock
was the most traded TSX-listed equity on the Toronto
Stock Exchange, by volume and session, in 2019.
Holiday
Cannabis
Non-cannabis
January
FEBRUARY
Tue
Mon
Tue
Wed
Thu
Fri
Mon
Wed
Thu
Fri
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
APHA
MARCH
APRIL
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
CRON
ACB
ACB
MAY
JUNE
APHA
ACB
ACB
JULY
AUGUST
APHA
ACB
TRST
ACB
TRST
TRST
SEPTEMBER
OCTOBER
TGOD
ACB
ACB
ACB
TGOD
TGOD
ACB
ACB
APHA
ACB
TGOD
ACB
ZENA
ACB
NOVEMBER
DECEMBER
ACB
ACB
ZENA
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ACB
ZENA
MATT LUNDY, THE GLOBE AND MAIL; SOURCE: TMX GROUP
It’s not only the top of the TSX leaderboard where it was clear pot-stock interest was on the wane. For most major producers, trading volume ebbed in 2019 as investors digested the realities of an industry that is struggling to meet expectations.