Many investors may have rubbed their eyes in amazement, and some may even have wondered what they had been smoking before taking a look at the winners and losers among German shares. The share price of cannabis specialist Synbiotic jumped by up to 43% at the beginning of the week. Shares in Cantourage, another company specialising in cannabis, rose by up to 52%, while Cannovum's share price rose by as much as 95%.

Such price movements are not seen every day on the stock market. There is currently a good reason for this: What was previously only permitted on the stock exchange in the form of shares is now to be generally liberalised. Cannabis is to be legalised in Germany on the perhaps deliberately chosen date of 1 April, which marks April Fool's day.

Synbiotic's share price did not just start to soar on Monday. Over the course of the year, the share price rose by 147%. However, the share price has fallen by 41% within a year. At recently 6.86 euros, the share price is a long way from its all-time high of 33 euros. This was reached in November 2021, when cannabis legalisation was once under discussion but was then delayed for a long time. Cantourage, on the other hand, only went public at the beginning of November 2023, with the current price of around 10 euros still well below the level of almost 20 euros shortly after the IPO.

Now, listed companies generally specialise in medicinal cannabis, which is already approved in Germany with severe restrictions. As far as legalisation as a recreational drug is concerned, the state is relying more on consumers' own initiative and not yet on a commercial supply. In future, individuals and specially founded clubs will be allowed to grow small quantities themselves. For the time being, there is no room for commercial providers. The frenzied price development could, therefore, be followed by disillusionment as the effects wear off.