Yesterday, the Canadian Securities Exchange, a.k.a. the CSE, announced the launch of a brand new index. The new CSE25 index is comprised of the securities of the largest companies trading on the exchange, including a handful of cannabis-related investments.
According to the release, the CSE25 Index is a subgroup of the recently re-balanced CSE Composite Index. The new index includes the top twenty-five securities by market capitalization contained in the composite index, which account for over 50% of the weighting in the larger index and are typically stocks that attract considerable trading volume.
Of the 25 companies included in this new index, 17 are cannabis-related. With a combined weighting in the index, cannabis companies represent 76.18% of the new CSE25 Index, making it a great benchmark to track the performance of the Canadian cannabis sector. As you'll see in the index component list below, marijuana-related companies are in bold.
Liberty Health Sciences Inc. (CSE:LHS) - 14.31% Weighting
CannTrust Holdings Inc. (CSE:TRST) - 13.00% Weighting
Urbana Corporation A NV (CSE:URB.A) - 6.25% Weighting
Alternate Health Corp. (CSE:AHG) - 5.69% Weighting
Richard Carleton, CEO of the CSE commented that "as the exchange has grown rapidly in terms of trading volumes and market capitalization it is appropriate that we give market participants a benchmark that monitors the performance of our largest and most liquid issues. As the 'exchange for entrepreneurs' we are proud of their success in the Canadian capital markets."
As cannabis-related issuers have flocked to the CSE for its lower listing fees and laxer listing requirements, investor awareness and trading volume at the CSE has grown tremendously. The turnover of the entire market measured by the value of trading divided by the total market cap has averaged 6.6% per month in the year to date, which represents a level of market activity unrivaled in the Canadian exchange space.