WASHINGTON – Shares of pot companies advanced in early pre-market trading on Sept 29 following a social media post by US President Donald Trump over the weekend that suggested potential health benefits from the use of cannabidiol.

Mr Trump’s post on Sept 28 said cannabidiol (CBD) could “revolutionise senior healthcare” by helping reduce disease progression and was shown as an alternative to prescription drugs.

In early August, Mr Trump had said his administration was looking to

reclassify the drug

, which could also result in potentially easing criminal penalties around the use of marijuana.

US-listed shares of Canopy Growth and Tilray Brands jumped about 20 per cent each in early trade, while Cronos Group and Aurora Cannabis also added 13.3 per cent each.

The AdvisorShares Pure US Cannabis exchange-traded fund (ETF) surged 20.6 per cent and is on track for its biggest quarterly gain on record of around 70 per cent.

“MSOS, the largest US marijuana-focused ETF, is indicated up 20 per cent at the open and benefiting from US President Trump’s surprise support on Sept 28 for the potential benefits of CBD, with any support going a long way for this beleaguered listed sector,” said Mr Ben Laidler, head of equity strategy at Bradesco BBI.

Reclassification of the drug would also remove the tax burden under Section 280E, which denies standard business deductions to cannabis companies. If the tax barrier is resolved, it could pave the way for cannabis companies to list on US stock exchanges, further unlocking capital market access. REUTERS