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. I do this because 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:
- Syrah Resources Ltd (ASX: SYR) remains the most shorted share on the ASX with short interest of 16.9%, which is up slightly week on week. The graphite miner has come under pressure after the release of a disappointing trading update.
- Inghams Group Ltd (ASX: ING) has 16% of its shares held short, which is up week on week. Short sellers may be targeting the poultry producer due to concerns that it will suffer from higher input costs due to the droughts.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest decline for a third week in a row to 15%. Short sellers may have closed positions to take profit after Galaxy's shares sank lower following its recent update.
- Orocobre Limited (ASX: ORE) has short interest of 13.3%, up slightly week on week. Last week the lithium miner's shares dropped lower after its half year results and quarterly pricing guidance disappointed.
- InvoCare Limited (ASX: IVC) has 12.9% of its shares held short, down slightly week on week. The funerals company's shares surged higher last week after management indicated that trading conditions had improved.
- JB Hi-Fi Limited (ASX: JBH) has seen its short interest fall again, this time notably to 12.5%. A better than expected half year result from the retail giant appears to have spooked short sellers.
- Metcash Limited (ASX: MTS) has 12.3% of its shares in the hands of short sellers, which is down on last week's numbers. Last week one of its supermarket rivals warned that trading conditions were expected to be tough in the second half.
- BWX Ltd (ASX: BWX) has seen its short interest slide to 11.8%. The personal care products company's shares rocketed higher last week after the release of its half year results. Although those results were very poor, its outlook for the second half was solid.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest rise to 11.1%. Short sellers may be increasing their position in the embattled department store operators ahead of its half year results next month.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 10.9%, which is flat week on week. Short sellers will have been celebrating last week when the pizza chain operator's shares tumbled lower after the release of a weak half year result.
