TORONTO – Canopy Progress Corporation (TSX:WEED) is added to the significant S&P/TSX Composite Index inside another milestone for Canada’s fledgling marijuana industry.
The cannabis maker will be added to the actual index’s health-care sector before start of trading on March 20, S&R Dow Jones Crawls said late with Friday. It claimed it will be the first bud company to join a index.
Big institutional investors in addition to index funds utilize the index to guide obtaining decisions, so becoming included can lead to additional demand for a stock. Canopy panels shares were in place 2.2 per cent at $11.07 later on Monday.
“Canopy’azines inclusion upon the other rebalancing expected this Fri March 17, 2017 may drive more investors to the name, plus the sector as complete,” Daniel Pearlstein, an analyst at Eight Capital whom covers the marijuana industry, said within an email.
In order to qualify inclusion in the index, companies have to match specific requirements in terms of market capitalization together with liquidity.
They must also possibly be traded on the Greater Stock Exchange for at least 6 full calendar several months.
Canopy has been trading about the Toronto Stock Exchange due to the fact July, 2016. Prior to in which, the medical marijuana manufacturer traded on the TSX Endeavor Exchange for close to two years.