At the start of each week I like to look at ASIC’s short position report in order to find out which shares are being targeted by short sellers.

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 shares on the ASX this week according to ASIC:

• Myer Holdings Ltd (ASX: MYR) continues to be the most shorted share on the ASX with short interest rising to 14.3%. Short sellers appear concerned that the pandemic has disrupted its turnaround plans.  
• Speedcast International Ltd (ASX: SDA) has short interest of 13.2%, which is flat week on week. The communications satellite technology provider’s shares have been suspended for some time. It now plans to declare itself bankrupt after failing to recapitalise.
• Galaxy Resources Limited (ASX: GXY) has seen its short interest fall week on week to 12.9%. Investors may believe the lithium miner’s shares have bottomed now after falling sharply over the last 12 months due to falling lithium prices.
• Orocobre Limited (ASX: ORE) has seen its short interest drop lower again to 11.5%. Short sellers have been targeting Orocobre due to a collapse in the price of lithium and production disruption during the pandemic. Last week its shares fell to a multi-year low.
• JB Hi-Fi Limited (ASX: JBH) has seen its short interest reduce week on week to 9.9%. Unfortunately for short sellers, this retailer’s shares have been storming higher over the last few weeks. It recently revealed strong quarterly sales growth despite the pandemic.
• Pilbara Mineral Ltd (ASX: PLS) has short interest of 9.4%, which is down slightly week on week. Pilbara Minerals is another lithium miner which has come under pressure due to weak lithium prices and concerns that a recovery could be delayed because of the pandemic.
• Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest rise to 9.4%. Short sellers appear to believe this biopharmaceutical company’s shares are overvalued and could be due for a correction. They are currently changing hands at 59x trailing earnings.
• Zip Co Ltd (ASX: Z1P) has seen its short interest fall to 9.3%. Short sellers have continued to target the buy now pay later company despite it delivering exceptionally strong growth during the month of April.
• Inghams Group Ltd (ASX: ING) has short interest of 9.1%, which is down week on week again. Short sellers have been targeting the poultry company due to concerns over its narrowing margins.
• Super Retail Group Ltd (ASX: SUL) has seen its short interest rise to 8.9%. It looks as though short sellers expect some of Super Retail’s retail brands to struggle during the pandemic.

More reading

• These were the best performing ASX 200 shares last week
• These ASX 200 shares just crashed to multi-year lows
• 3 common mistakes millennials make investing in ASX shares
• Is the Zip share price in the buy zone?
• ASX 200 up 0.35%, CBA gives Q3 update

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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.

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a very positive note. The benchmark index climbed 1.4% to 5,404.8 points.

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

ASX 200 expected to push higher.

The ASX 200 looks set to continue its positive form on Monday. According to the latest SPI futures, the index is expected to rise 32 points or 0.6% at the open. This follows a strong end to the week on Wall Street which saw the Dow Jones rise 0.25%, the S&P 500 climb 0.4%, and the Nasdaq index jump 0.8% higher.

Oil prices jump.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices jumped higher on Friday night. According to Bloomberg, the WTI crude oil price rose 6.8% to US$29.43 a barrel and the Brent crude oil price jumped 4.4% to US$32.50 a barrel.

Gold price storms higher.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could continue their charge on Monday after the gold price stormed higher. According to CNBC, the spot gold price rose 0.9% to a seven year high of US$1,756.30 an ounce after US-China tensions fuelled economic worries.

Coles class action.

The Coles Group Ltd (ASX: COL) share price will be on watch today after revealing that it has been hit with a class action. On Friday Coles advised that a class action proceeding has been filed in the Federal Court in relation to the underpayment of Coles managers employed in supermarkets. The company is already working towards remediating the affected employees. As such, it believes the class action is without merit and will defend it.

Macquarie shares going ex-dividend.

The Macquarie Group Ltd (ASX: MQG) share price is likely to trade lower today after going ex-dividend. Eligible shareholders can now look forward to being paid its $1.80 per share partially franked final dividend on July 3.  

Returns as of 7/4/2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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.

More reading

• ASX 200 up 0.25% this week, CBA reveals Q3
• Top brokers name 3 ASX 200 shares to sell next week
• Why BHP is an ASX 200 dividend share to buy today
• What to watch on the ASX 200 next week
• Are rental yields better than dividend yields?

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