These are the 10 most shorted ASX shares

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the Australian share market’s most shorted share after its short interest rose to 15.4%. Although there have been some encouraging updates out of the travel sector, short sellers appear to believe investors are expecting too much given how rising living costs are squeezing budgets. Particularly in Europe where energy prices have risen extraordinarily.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 13.4%. Short sellers have been adding to their positions after this betting technology company posted a massive $89.2 million loss in FY 2022.
• De Grey Mining Limited (ASX: DEG) has short interest of 10.6%, which is down slightly week on week. There may be concerns that cost inflation could lead to the Mallina Gold Project costing more than expected.
• Block Inc (ASX: SQ2) has short interest of 10.4%, which is down slightly week on week once again. Concerns over a potential US recession and the market’s aversion to loss-making tech stocks have been weighing on Block’s shares.
• Nanosonics Ltd (ASX: NAN) has short interest of 10.3%, which is down a touch week on week. Rising costs, a disappointing full year result, and product launch delays have hit this infection prevention company’s shares.
• Lake Resources N.L. (ASX: LKE) has short interest of 9.9%, which is down week on week. This lithium developer’s shares have rallied very strongly recently but short sellers aren’t giving up on it.
• Zip Co Ltd (ASX: ZIP) has seen its short interest ease slightly to 9.5%. This buy now pay later provider’s shares have just been dealt a blow by being dumped out of the ASX 200 index at the next rebalance.
• City Chic Collective Ltd (ASX: CCX) has jumped into the top ten with short interest of 9.35%. Short sellers will have been pleased to see this plus sized fashion retailer’s shares crash after the release of a very disappointing full year result. City Chic’s shares have also just been kicked out of the ASX 200.
• Regis Resources Limited (ASX: RRL) has short interest of 8%, which is down week on week yet again. Short sellers appear to be closing positions slowly but surely. Production issues have been weighing on this gold miner’s shares.
• Inghams Group Ltd (ASX: ING) has short interest of 8%, which is down week on week. This poultry company may have been targeted due to concerns over higher input costs.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• Why these 3 ASX shares could be in for a massive boost this month
• Zip shares on watch amid ASX 200 ousting
• 5 things to watch on the ASX 200 on Monday
• Zip and these shares have been kicked out of the ASX 200 index
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd, Block, Inc., Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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