These are the 10 most shorted shares on the ASX

Galaxy Resources Limited (ASX:GXY) shares and Vocus Group Ltd (ASX:VOC) shares are two of ten being targeted by short sellers this week. Here's what you need to know…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

At the start of each week I like to look at which shares are being targeted by short sellers.

As short selling is one of the riskiest strategies out there, short sellers will generally only take out a position if they have a high conviction of success. Considering this, I think it is prudent for investors to keep a close eye on short interest levels.

Here are the 10 most shorted shares on the ASX according to data provided by ASIC:

  • Syrah Resources Ltd (ASX: SYR) continues its run as the most shorted share on the ASX with short interest of 20.6%. Syrah has been targeted due to concerns over the impact its massive Balama project will have on graphite prices.
  • Domino's Pizza Enterprises Ltd. (ASX: DMP) has seen its short interest rise once again to 17.2%, cementing its place as the second-most shorted share on the local market. Short sellers appear to doubt that Domino's will hit its full-year guidance.
  • JB Hi-Fi Limited (ASX: JBH) has 16% of its shares held short, up slightly from last week. Short sellers may be targeting the retailer due to concerns over the threat of online competition and Amazon in particular.
  • Galaxy Resources Limited (ASX: GXY) has 14.3% of its shares held short. Last week Galaxy delivered a strong full-year result. Thanks to increased production and lithium prices, combined with lower production costs, Galaxy delivered full-year EBITDA of $52 million.
  • Healthscope Ltd (ASX: HSO) has seen short interest rise to 13.5%. Short sellers continue to target the private hospital operator due to concerns that falling private health insurance numbers is negatively impacting its business.
  • Independence Group NL (ASX: IGO) has short interest of 12.2%, down sharply for a second week in a row. Some short sellers may be admitting defeat on this one and closing positions. Independence's shares are now up 30% over the last 12 months.
  • Vocus Group Ltd (ASX: VOC) has short interest of 11.4%. Investor sentiment in the telco industry continues to remain negative amid concerns about increased competition and lower NBN margins.
  • Mayne Pharma Group Ltd (ASX: MYX) has returned to the top ten with short interest of 10.9%. The pharmaceutical company has been suffering greatly from weak prices in the U.S. generic drugs market.
  • Retail Food Group Limited (ASX: RFG) has short interest of 10.6%. The food and beverage company continues to be targeted by short sellers despite its sizeable decline this year.
  • HT&E Ltd (ASX: HT1) has 10.5% of its shares held short. Short interest has been falling quickly since the outdoor advertising company released a better than expected half-year result last month.
Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Vocus Communications 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »