Here 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) has returned to the top spot with short interest of 14.3%. Short sellers appear to be targeting the travel agent giant amid concerns over the travel market recovery due to the cost of living crisis.
• Betmakers Technology Group Ltd (ASX: BET) has dropped from the top spot after its short interest dropped 12.9%. With this betting technology company’s shares down over 60% since the start of the year, some short sellers may believe they have bottomed now and are closing positions.
• Perpetual Limited (ASX: PPT) has seen its short interest rise to 11.6%. Short sellers have been loading up on this fund manager’s shares after it was pressured into completing its acquisition of Pendal Group Ltd (ASX: PDL).
• Megaport Ltd (ASX: MP1) has seen its short interest remain flat 10.5%. Weakness in the tech sector and a soft start to FY 2023 appear to be why short sellers are targeting this network as a service operator’s shares.
• Sayona Mining Ltd (ASX: SYA) has 9.6% of its shares held short, which is down week on week. Short sellers appear to have concerns over the valuation of this lithium developer given recent forecasts for declining lithium prices.
• Lake Resources N.L. (ASX: LKE) has short interest of 8.7%, which is up week on week. Short sellers believe Lake could be having issues producing battery grade lithium at scale from its Kachi operation.
• Nanosonics Ltd (ASX: NAN) has short interest of 8.5%, which is flat week on week. There are concerns over this medical device company’s margins due to a major sales model change in the US.
• Zip Co Ltd (ASX: ZIP) has returned to the top ten with short interest of 8.2%. Short sellers appear to believe that the buy now pay later provider will struggle to achieve profitability as targeted.
• Breville Group Ltd (ASX: BRG) has seen its short interest slide again to 8.1%. Short sellers continue to close positions following the recent release of the appliance manufacturer’s first quarter update.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has short interest of 7.1%, which is down materially week on week. Short sellers may be closing positions on the belief that headwinds are now easing for the pizza chain operator.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• The Zip share price has halved since late July. What went so wrong?
• Building a retirement income portfolio? I’d buy this unstoppable ASX dividend share
• The cheap ASX shares to buy for dividends: broker
• ASX 200 correction: A once-in-a-lifetime chance for supercharged passive income!

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group, Megaport, Nanosonics, and Zip Co. The Motley Fool Australia has positions in and has recommended Nanosonics. The Motley Fool Australia has recommended Betmakers Technology Group, Domino’s Pizza Enterprises, Flight Centre Travel Group, and Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/59WpFmc