Shares in two NZX-listed medicinal cannabis companies have taken a hit, in the wake of the cannabis referendum result

Cannasouth shares dropped 17 per cent, while Rua Bioscience by three per cent.

Director of Equities at Forsyth Barr, Rob Mercer, says it's unsettling for shareholders who've backed the companies for the right reasons.

But he says we've seen in the past the market will settle down, and investors will see some kind of recovery.