Here are the 10 most shorted ASX shares

The words short selling in red against a black background

The words short selling in red against a black background

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:

  • Betmakers Technology Group Ltd (ASX: BET) has become the most shorted share on the Australian share market after its short interest rose to 15%. This betting technology company’s shares are down 69% this year but short sellers appear to believe they can keep falling.
  • Flight Centre Travel Group Ltd (ASX: FLT) has dropped from the top spot at long last after its short interest eased to 14.85%. Some short sellers may believe the worst is over for Flight Centre. Though, there’s still an abnormally high level of shares held short.
  • Block Inc (ASX: SQ2) has seen its short interest remain flat at 12.1%. Short sellers will have been disappointed to see this payments company’s shares shoot higher last week after a strong quarterly update.
  • Megaport Ltd (ASX: MP1) has seen its short interest fall to 11.6%. Megaport’s shares came under pressure recently following the release of a soft quarterly update.
  • Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest remain at 11.1%. This pizza chain operator’s shares sank into the red last week after a very disappointing trading update at its AGM.
  • Perpetual Limited (ASX: PPT) has seen its short interest rise to 11.1%. This fund manager’s shares charged higher last week after receiving a takeover approach.
  • Breville Group Ltd (ASX: BRG) has seen its short interest rise to 9%. Concerns that the uncertain economic backdrop could impact consumer spending appears to be weighing on sentiment.
  • Sayona Mining Ltd (ASX: SYA) has entered the top ten with short interest of 8.9%. This may be due to valuation and funding concerns for this lithium developer.
  • Nanosonics Ltd (ASX: NAN) has short interest of 8.6%, which is up week on week. Short sellers continue to target this infection prevention company’s shares due to its business model change in the key US market.
  • Temple & Webster Group Ltd (ASX: TPW) has short interest of 8.3%, which is down week on week. Valuation concerns may be behind this high level of short interest. Temple & Webster trades at ~70x FY 2023 earnings.

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

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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 Temple & Webster Group Ltd. 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, MEGAPORT FPO, and Temple & Webster Group Ltd. 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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