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by Stockwatch Business Reporter

The S&P/TSX Cannabis Index lost a fraction to 36.78, while the CSE Composite Index lost 4.01 to 244.90. Rumours of the death of U.S. federal cannabis reform have been greatly exaggerated, according to cheerleaders. "We remain bullish on cannabis banking," declared the analysts at BTIG in a new research note. Their counterparts at Jefferies chimed in that it is "difficult not to be optimistic that SAFE [the SAFE Banking Act] gets done in the next few months" (emphasis in the original). From Cantor Fitzgerald came the steadfast belief that "SAFE is not dead, contrary to what stocks may be implying."

The boosterish chants came as the sector seemed to brace itself for another painful week. Last week ended grimly, with the AdvisorShares Pure U.S. Cannabis ETF (MSOS) -- the main exchange-traded fund for U.S. cannabis operators -- sliding below $10 (U.S.) on Friday for the first time ever. It extended its fall today, losing 38.5 U.S. cents to $9.035 (U.S.). This partly reflects a broader market decline, but as the analysts at Cantor pointed out in their new research note, MSOS has fallen by around 30 per cent over the last month, whereas the S&P 500 has fallen by only 12 per cent.

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