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Here are the 10 most shorted shares on the ASX

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:

  • Inghams Group Ltd (ASX: ING) has become the most shorted share on the ASX with 17.2% of its shares held short. This was a notable increase week on week. Short sellers have been targeting the poultry producer’s shares due to the impact that the droughts have had on input costs.
  • Syrah Resources Ltd (ASX: SYR) has seen its short interest slide slightly to 17%. Concerns over higher operating costs and weakening graphite prices have weighed on the graphite producer’s shares this year. Its shares hit a multi-year low last week, much to delight of short sellers.
  • Galaxy Resources Limited (ASX: GXY) has seen its short interest increase again to 15.4%. Short sellers continue to remain negative on Galaxy and the rest of the lithium miners due to weakening lithium prices.
  • JB Hi-Fi Limited (ASX: JBH) has seen its short interest drop slightly to 12.7%. This is despite rival Harvey Norman Limited (ASX: HVN) recently revealing that its second half Australian sales were lower the prior corresponding period.
  • Orocobre Limited (ASX: ORE) has short interest of 12.5%, down week on week once again. Last month the lithium miner’s shares tumbled notably lower after its half year results and quarterly pricing guidance disappointed.
  • BWX Ltd (ASX: BWX) has seen its short interest rise strongly to 11.7%. The personal care products company’s shares rocketed higher last month after management provided a positive outlook for the second half. Some short sellers don’t appear convinced that the company is over the worst of its issues yet.
  • InvoCare Limited (ASX: IVC) has 11.5% of its shares held short, down slightly week on week. Last week the funerals company took advantage of its strong share price rise to launch a capital raising.
  • Metcash Limited (ASX: MTS) has 11.3% of its shares in the hands of short sellers, which is down once again on last week’s numbers. The wholesale distributor’s shares have come under pressure in recent months due to concerns over increasing competition in the supermarket industry.
  • NEXTDC Limited (ASX: NXT) has re-entered the top 10 with short interest of 11.3%. Last week the data centre operator’s CEO blamed algorithmic trading for its post-results share price decline.
  • Myer Holdings Ltd (ASX: MYR) has seen its short interest has fallen to 11%. Short sellers may be regretting not closing position earlier. Last week the department store operator’s shares rose strongly after releasing a stronger than expected half year result.

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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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