These are the 10 most shorted ASX shares

Nearmap Ltd (ASX:NEA) and Pilbara Mineral Ltd (ASX:PLS) shares are amongst the most shorted shares on the ASX right now…

| More on:
most shorted ASX shares

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:

  • Galaxy Resources Limited (ASX: GXY) continues to be the most shorted share on the ASX despite its short interest falling slightly to 19.5%. An oversupply of lithium has weighed heavily on prices of the battery making ingredient and ultimately its shares.
  • Syrah Resources Ltd (ASX: SYR) has seen its short interest slide to 17.3%. An oversupply of graphite has weighed heavily on this miner’s shares. Syrah is the owner of the massive Balama graphite operation in Africa.
  • Orocobre Limited (ASX: ORE) has seen its short interest edge higher to 14.1%. Orocobre is another lithium miner which has come under pressure due to falling prices of the battery making ingredient due to an oversupply.
  • 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 since the start of February. It appears to be struggling to arrange financing given the tough market conditions and its significant debt.
  • Metcash Limited (ASX: MTS) has short interest of 13.1%, which is up week on week once again. Short sellers may be regretting this one. Metcash’s shares were surging higher last week after a broker upgrade.
  • Inghams Group Ltd (ASX: ING) has short interest of 12.25%, which is down week on week once again. It appears as though some short sellers believe the poultry company’s shares have bottomed after its recent share price weakness.
  • GWA Group Ltd (ASX: GWA) has short interest of 10.9%, which is up slightly week on week. The building products company’s shares have come under pressure recently following the release of a disappointing half year result. That update revealed a 69% decline in total net profit after tax to $23.6 million.
  • Nearmap Ltd (ASX: NEA) has seen its short interest slide to 10.6%. The aerial imagery technology and location data company’s shares have fallen materially this year due to a surprise guidance downgrade following the loss of several key customers.
  • New Century Resources Ltd (ASX: NCZ) has seen its short interest drop slightly to 10.1%. The base metal producer’s shares have collapsed over the last 12 months. Despite this, short sellers appear to believe it is not over the worst of its issues.
  • Pilbara Minerals Ltd (ASX: PLS) has entered the top ten with short interest of 9.7%. Pilbara Minerals is yet another lithium miner that short sellers have successfully been targeting. Its shares are down 76% over the last 12 months.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. 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 Share Market News

man at casino throwing chips in the air
Broker Notes

Why the Aristocrat share price is surging again today

The gain comes on top of its 6.7% surge yesterday.

Read more »

A white and black clock face is shown with three hands saying Time to Buy reflecting Wilson Asset Management's two ASX share picks in its WAM Research portfolio
Broker Notes

Brokers name 3 ASX shares to buy today

Brokers are bullish on these ASX shares...

Read more »

Illustration of men and women pushing share price graph up
Share Market News

Why are ASX 200 shares rebounding on Friday?

China's COVID-zero policies have slowed its economic growth and impacted its trading partners.

Read more »

Boy looks quizzical standing in front of a graph.
Share Market News

Here are the 3 most traded ASX 200 shares on Friday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

Red arrow going down on a stock market table which symbolises a falling share price.
Share Fallers

Why Australian Vanadium, John Lyng, Nufarm, and Unibail-Rodamco-Westfield are dropping

These ASX shares are ending the week in the red...

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Share Gainers

Why are ASX coal shares charging higher again today?

The global energy crisis has pushed coal prices to all-time highs.

Read more »

A man leaps from a stack of gold coins to the next, each one higher than the last.
Technology Shares

Why is the Block share price leaping 9% on Friday?

Block shares are storming ahead on a good day for the ASX tech sector.

Read more »

A path through the grass leads to two signs, pointing to profit and loss
Broker Notes

These ASX All Ordinaries shares have the greatest margin risks from surging inflation: UBS

Several ASX shares could be at risk from the threat of higher inflation.

Read more »