These are the most shorted ASX shares

Every Monday I like to take a look at ASIC’s short position report to find out which shares have been targeted by short sellers.

I think it is worth keeping an eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right.

With that in mind, here are the 10 most shorted shares on the ASX this week:

  • JB Hi-Fi Limited (ASX: JBH) continues its run as the most shorted share on the Australian share market with short interest increasing to 19.6%. Short sellers appear to be betting that online competition and a cooling housing market are likely to have a negative impact on its performance.
  • Syrah Resources Ltd (ASX: SYR) has seen its short interest rise week on week to 17%. Short sellers were dealt a blow this morning when Syrah’s shares pushed higher following a positive production update out of the graphite miner.
  • Galaxy Resources Limited (ASX: GXY) has seen its short interest push higher again to 16.1%. Short sellers have returned to the lithium miner after Moody’s predicted sharp declines in lithium prices.
  • Orocobre Limited (ASX: ORE) has short interest of 14%, up slightly week on week. As with Galaxy, this lithium miner is being targeted largely because of fears that prices will crumble in the coming years.
  • BWX Ltd (ASX: BWX) has seen its short interest jump again to 13.5%. The slowdown in sales of its key Sukin product range appears to have caught the eye of short sellers.
  • Inghams Group Ltd (ASX: ING) has 13% of its shares held short, up slightly since last week. Short interest remains high on the belief that increasing input costs are going to impact this poultry producer’s profits.
  • Metcash Limited (ASX: MTS) has 12.5% of its shares in the hands of short sellers, up slightly week on week. This morning the wholesale distributor’s shares sank lower after its half year result underwhelmed.
  • InvoCare Limited (ASX: IVC) has 12.1% of its shares held short, up slightly since last week. The funeral company has come under pressure this year due to its slower than expected earnings growth.
  • Myer Holdings Ltd (ASX: MYR) has seen its short interest rise to 11.3%. Weak sales figures for the first quarter of FY 2019 is likely to have encouraged short sellers to increase their bets against the struggling department store operator.
  • NEXTDC Ltd (ASX: NXT) has entered the top ten with 11.1% of its shares held short. The data centre operator’s shares are trading on a nosebleed earnings multiple. Short sellers may not be convinced its growth will justify the premium.

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited and NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia has recommended InvoCare 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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