(new: prices, experts and more details)

FRANKFURT (dpa-AFX) - The imminent legalization of cannabis in Germany in a few weeks' time drove German producers' shares up sharply on Monday. After a long struggle, the coalition parties of the coalition government agreed on the final details of the authorization of cannabis for adults on Friday. The corresponding law is to come into force on April 1. This had already triggered a share price rally for Synbiotic> and Cantourage on Friday.

The shares of Munich-based Synbiotic jumped by almost 43 percent to 8.00 euros at midday at the start of the week, while those of Berlin-based Cantourage gained 45 percent to 9.50 euros.

However, the record highs of these two relatively young companies are still a long way off. Both reached them shortly after their IPOs: Synbiotic at 41.80 euros in November 2021 and Cantourage at just under 40.50 euros in November 2022. However, they then fell rapidly - for Synbiotic to a record low of 2.86 euros in December 2023 and for Cantourage to a record low of 5.86 euros in January 2024.

Traders see the shares of both companies as objects of speculation, especially in view of the sharp price swings shortly after they went on the trading floor. However, once the fantasy of cannabis legalization had faded, interest also died down and is now flaring up again, said one trader.

Borsen expert Andreas Lipkow pointed out that both Synbiotic and Cantourage are companies with very low market capitalization. "It doesn't take much to catapult the shares to such lofty heights as today, for example." According to him, however, the two must first prove whether they can fulfill the expectations created by such strong price gains. For the time being, he therefore only sees "momentum-driven price reactions with an extreme risk of correction."/ck/mis/jha/

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