High demand for stake in dagga shares
Older investors cashing in on marijuana as SA joins rush to get a hand in the pot
Some local investors are cashing in on the burgeoning marijuana industry even as SA takes baby steps towards legalisation. Investors with offshore trading accounts have accessed the sector through instruments such as the Horizons Marijuana Life Sciences Index ETF, which tracks listed North American cannabis firms. The index, which has roughly doubled in value since listing in April 2017, surged as much as 45% in the nine trading days to Monday as alcohol conglomerates started wading into the pot sector. Earlier in Augustthis month, Constellation Brands, which makes Corona beers in the US, poured another $4bn into Canadian cannabis company Canopy Growth. The news nearly doubled Canopy Growth’s US-and Canadian-listed shares in the two weeks to Monday. Other cannabis stocks have climbed in recent days after BNN Bloomberg TV reported that Diageo, which makes Guinness beers and Johnnie Walker whiskey, was in talks with at least three Canadian weed producers about a possible deal. Not lon...
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