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) continues its long run as the most shorted share on the Australian share market after its short interest rose to 15.1%. Short sellers seem to believe that the market is too bullish on the travel market recovery due to rising living costs.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 14.5%. This betting technology company’s shares are down 60% in 2022 but short sellers appear to believe they can keep falling. In other news, last week it was revealed that major shareholder, Tom Waterhouse, sold $11 million worth of shares in recent weeks
• Block Inc (ASX: SQ2) has seen its short interest rise to 11.8%. Investors continue to target this payments company amid concerns that a global recession could slow its growth.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest jump to 10.7%. There are fears that cost inflation could be weighing on this pizza chain operator’s performance.
• Megaport Ltd (ASX: MP1) has seen its short interest rise to 10.6%. Short sellers will have been pleased to see this tech share crash lower last week after the release of a soft quarterly update.
• Perpetual Limited (ASX: PPT) has seen its short interest jump to 10%. A number of fund managers have been under pressure this year amid tough trading conditions.
• Lake Resources N.L. (ASX: LKE) has short interest of 9.8%, which is down slightly week on week. Short sellers have major doubts over this lithium developer’s unproven DLE technology.
• Nanosonics Ltd (ASX: NAN) has short interest of 8.3%, which is down week on week. This infection prevention company’s disruptive business model change in the key US market is causing concerns.
• Breville Group Ltd (ASX: BRG) has seen its short interest rise to 8.1%. Investors may be concerned that the uncertain economic backdrop could impact consumer spending on kitchen goods.
• Zip Co Ltd (ASX: ZIP) has returned to the top ten with short interest of 7.8%. Doubts over this buy now pay later provider’s profitability targets continue to weigh on its shares.

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

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More reading

• Brokers say these exciting ASX growth shares are buys
• Are Flight Centre shares worth buying in October?
• A certain ex-bookie has sold off $11m worth of this ASX 300 share in a month
• Why is ASX 200 tech share Block dropping like a stone today?
• Why is the Megaport share price receiving a 9% spanking 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., 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, Dominos Pizza Enterprises Limited, 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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