Are the Canadian markets trading well today because the American markets are closed? American markets are closed for the day to observe Martin Luther King Jr. Day, leaving the day’s trading to the international markets. Canadian markets seem to be benefiting from this, especially in the cannabis space.
I’ll be taking a look at Emerald Health Therapeutics (TSXV:EMH) (OTCQX:EMHTF) to evaluate whether or not this is true.
On the TSX Venture Exchange, Emerald Health is doing well today. The stock is currently trading at $5.85, putting it up $0.78, or 15.38%, from the previous closing price of $5.07. The stock has experienced a relatively steady, if small, growth since the market opened this morning at $4.55, dipping only once below the opening price to $4.50. The day’s pricing has ranged so far from a low of $4.50 to a high of $5.91.
On the TSX Venture Exchange Emerald Health’s stock has been declining for the past week, and is now potentially on a move to recovery (unless a crash occurs later in the day’s trading to reset its progress). With little recent news coming from the company itself, could this stock movement be a result of all the trading for the company currently taking place on one exchange instead of being split into two like it normally would be?
To compare, we’ll have to swap over to the other exchange that Emerald Health trades on, the OTCQX Marketplace. OTC markets are closed for the day, but we can take a look at how Emerald’s stock did on Friday when the market was last open. On the OTCQX Marketplace, Emerald Health closed on Friday at $4.0268. That put the stock down $0.5191, or 11.42%, from Thursday’s closing price of $4.5459. On Friday, Emerald Health was also down for the day on the TSX Venture Exchange.
Keeping in mind that major price differences are largely due to the different currencies used on the exchanges, Canadian dollar vs. American dollar, the direction of the stock on either exchange is what needs to be considered. On both exchanges, the Emerald Health stock has been declining for the past week.
Now, on the TSX Venture Exchange, Emerald Health is seeing its largest growth in a day than it has in the past week, which does seem to suggest that there is some connection to the fact that the American markets are closed. With the American markets closed for the day, all the trading for a company like Emerald Health can only occur on its Canadian exchange. While this doesn’t necessarily directly correlate to a stock increase, a stock increase is nevertheless occurring for Emerald Health. I’ll be interested to see how long it lasts; will the decline reappear with the reopening of the OTCQX Marketplace?
Featured Image: twitter
