At the start of each week I like to look at ASIC’s short position report in order to find out which are the most shorted ASX shares.

This is because I believe it is 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 ASX shares this week according to ASIC:

• Myer Holdings Ltd (ASX: MYR) remains the most shorted ASX share after its short interest rose to 14.6%. Short sellers may be concerned that the recovery of its department stores has been materially derailed because of the pandemic.
• Speedcast International Ltd (ASX: SDA) has short interest of 13.2%, which is flat week on week. This communications satellite technology provider’s shares remain suspended while it declares itself bankrupt.
• Galaxy Resources Limited (ASX: GXY) has seen its short interest fall week on week again to 12.5%. The lithium miner’s shares have fallen heavily over the last 12 months due to falling lithium prices.
• Orocobre Limited (ASX: ORE) has seen its short interest drop lower again to 10.8%. A collapse in the price of lithium and production disruptions during the pandemic have been weighing heavily on Orocobre’s shares.
• Super Retail Group Ltd (ASX: SUL) has seen its short interest rise to 9.6%. The market appears concerned that Super Retail’s portfolio may be more exposed to the pandemic than others.
• Pilbara Mineral Ltd (ASX: PLS) has short interest of 9.5%, which is up slightly week on week. Pilbara Minerals is another lithium miner which has been targeted due to weak prices. There are also concerns that a recovery in the demand for the battery making ingredient could be delayed because of the pandemic.
• JB Hi-Fi Limited (ASX: JBH) has seen its short interest fall sharply week on week to 9.3%. Short sellers are continuing to close positions, possibly due to the retailer performing strongly during the crisis.
• Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest slide to 9.3%. This biopharmaceutical company’s shares are trading at a premium which some investors appear to believe is excessive.
• Inghams Group Ltd (ASX: ING) has short interest of 8.8%, which is down week on week again. Short sellers continue to close their positions, possibly on the belief that the poultry company’s shares have bottomed now.
• Bank of Queensland Limited (ASX: BOQ) has entered the top 10 most shorted ASX shares with short interest of 8.8%. The regional bank has been struggling this year and short sellers don’t appear to believe the worst is over just yet.

More reading

• These were the best performing ASX 200 shares last week
• Myer share price bounces after announcing its doors will be reopening across the nation
• Is Telstra about to be caught in a new mobile phone war?
• ASX retail stocks facing new billion-dollar earnings scare during COVID-19 recovery
• $3,000 invested in these 3 ASX industries could make you a fortune in the future

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

from Motley Fool Australia https://ift.tt/3gm2JA4

On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a disappointing note. The benchmark index fell 0.95% to 5,497 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to storm higher.

The ASX 200 looks set to start the week strongly. According to the latest SPI futures, the index is expected to open the day 65 points or 1.2% higher this morning. This follows a reasonably positive end to the week on Wall Street. The Dow Jones was flat, the S&P 500 rose 0.25%, and the Nasdaq pushed 0.4% higher.

Oil prices tumble lower.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices tumbled lower on Friday night. According to Bloomberg, the WTI crude oil price fell 2% to US$33.25 a barrel and the Brent crude oil price fell 2.6% to US$35.13 a barrel. Despite these declines, oil prices recorded their fourth consecutive week of gains.

Gold price pushes higher.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price rose 0.9% to US$1,753.50 an ounce. Concerns over US-China tensions lifted demand for the precious metal.

Lynas U.S. update.

The Lynas Corporation Ltd (ASX: LYC) share price will be one to watch on Monday. On Friday the rare earths producer revealed doubts over its U.S. plans. Last month the U.S. Department of Defense announced that it intends to award a Phase I contract for a U.S. based Heavy Rare Earth separation facility to Lynas. However, there have been objections to its construction and Lynas understands that plans are now on hold while political issues are addressed.

Sydney Airport rated as a buy.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price could be on the move after analysts at Goldman Sachs reiterated their buy rating and $7.00 price target on the airport operator’s shares. This follows the company’s annual general meeting last week. It remains positive on valuation grounds and expects to see a staged recovery in passenger volumes over the medium term.

More reading

• Why these ASX stocks will be under the spotlight on Monday
• Got $2,000? Here are 2 ASX 200 healthcare shares to buy today
• Have $500 to invest? Then buy these 5 ASX 200 shares immediately
• What to watch on the ASX 200 next week
• How to tidy up your super in just 10 minutes this weekend

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3e9ntcu