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:

• Pilbara Minerals Ltd (ASX: PLS) continues its long run as the most shorted ASX share even though its short interest eased slightly to 21.2%. Short sellers don’t seem to believe that lithium prices will improve any time soon.
• Syrah Resources Ltd (ASX: SYR) has short interest of 16.4%, which is up week on week again. This has been driven by weak graphite prices.
• Core Lithium Ltd (ASX: CXO) has short interest of 12.6%, which is down slightly week on week. Falling lithium prices mean that this miner has just announced plans to suspend production to conserve cash.
• Sayona Mining Ltd (ASX: SYA) has 11.4% of its shares held short, which is up week on week again. Last week the lithium miner announced the start of a strategic review of its operations in the face of weak prices.
• IDP Education Ltd (ASX: IEL) has 10.2% of its shares held short, which is flat week on week. This language testing and student placement company’s shares came under pressure last week after Canada announced limits to student visas.
• Genesis Minerals Ltd (ASX: GMD) has seen its short interest rise to 8.9%. Short sellers may believe the gold miner overpaid for recent acquisitions.
• Deep Yellow Limited (ASX: DYL) has seen its short interest fall again to 8.7%. While there are concerns that a capital raising is coming, strong uranium prices have helped drive its shares notably higher this month, much to the dismay of short sellers.
• Weebit Nano Ltd (ASX: WBT) has short interest of 8.5%, which is up week on week. Short sellers appear to believe this semiconductor company is another meme stock.
• Flight Centre Travel Group Ltd (ASX: FLT) has 8.4% of its shares held short, which is up slightly week on week. Short sellers may believe the market’s growth assumptions are too ambitious.
• Chalice Mining Ltd (ASX: CHN) has entered the top ten with short interest of 6.8%. This mineral exploration company’s shares have crashed 84% over the last 12 months. Short sellers appear to believe there’s further to fall.

The post These 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 Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group and Idp Education. 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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