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 most shorted share on the ASX after its short interest rose to 15.3%. Short sellers will have been pleased to see this travel agent’s shares hit a 52-week low today.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 14%. Once again, short sellers are winning with this one. This betting technology company’s shares dropped to a 52-week low today. Valuation concerns appear to be weighing on them during the market volatility.
• Block Inc (ASX: SQ2) has seen its short interest ease slightly to 10.3%. Weakness in the tech sector, concerns over the prospects of a global recession, and regulatory pressure in the BNPL industry have been putting pressure on its shares.
• Lake Resources N.L. (ASX: LKE) has short interest of 9.9%, which is flat week on week. This lithium share has fallen heavily this month due to market volatility and an ownership dispute with its partner Lilac Solutions.
• Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.4%. This could be due to valuation concerns and significant weakness in the tech sector.
• Inghams Group Ltd (ASX: ING) is back in the top ten after its short interest rebounded to 8%. Concerns over higher input costs have been weighing on sentiment.
• Nanosonics Ltd (ASX: NAN) has short interest of 7.9%, which is down slightly week on week again. Short sellers appear to have been targeting this infection prevention company due to a disruptive business model change in the key US market.
• Breville Group Ltd (ASX: BRG) is a new entry in the top ten with short interest of 7.7%. One of Breville’s rivals recently warned that the uncertain economic backdrop could impact spending trends. It also highlighted ongoing supply chain pressures.
• Zip Co Ltd (ASX: ZIP) has seen its short interest reduce materially to 7.6%. This could be because this BNPL provider was kicked out of the ASX 200 index. Some fund managers can only invest in/short shares in the benchmark index.
• De Grey Mining Limited (ASX: DEG) has short interest of 7.5%, which is down week on week. Short sellers have been closing positions after this gold developer released a positive update on its Mallina Gold Project.

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

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More reading

• Why the ‘outlook presents challenges’ for Zip shares: expert
• Why is the Lake Resources share price sinking 7% on Monday?
• 2 stellar ASX growth shares that experts say are buys
• Could this be good news for Flight Centre shares?
• Here’s which ASX lithium shares investors have been loading up on this month

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., MEGAPORT FPO, 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, Flight Centre Travel Group Limited, and MEGAPORT FPO. 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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