These are the 10 most shorted shares on the ASX

Short sellers are targeting these ASX shares…

most shorted ASX shares

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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.

This is because I believe it is well 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:

  • Webjet Limited (ASX: WEB) has become the most shorted share on the ASX after its short interest rose to 11%. Lockdowns and border closures appear to be weighing heavily on this online travel agent's shares.
  • Kogan.com Ltd (ASX: KGN) has seen its short interest fall meaningfully week on week to 10.2%. Short sellers appear to have been closing positions on the belief that the recent outbreak of COVID-19 in Australia could boost online retailers again.
  • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest jump to 10.1%. As with Webjet, lockdowns and border closures look set to delay this travel agent's recovery from the pandemic.
  • Inghams Group Ltd (ASX: ING) has 8.8% of its shares held short, which is flat week on week. Short sellers are believed to be targeting the poultry company due to concerns over an upcoming major contract renewal with a supermarket giant.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.1% of its shares held short, which is down week on week once again. Supply chain concerns and unusual accounting methods are the reason this communications, defence, and space company is being targeted.
  • Resolute Mining Limited (ASX: RSG) has seen its short interest remain at 8%. A weakening outlook for the gold price and production and regulatory issues have weighed heavily on its shares this year.
  • Zip Co Ltd (ASX: Z1P) has short interest of 8%, which is up week on week again. There are concerns that Afterpay's new pay anywhere service in the United States could disrupt Zip's key Quadpay business.
  • Tassal Group Limited (ASX: TGR) has short interest of 7.7%, which is down week on week once again. With salmon prices tipped to rebound, short sellers appear to have been closing their positions.
  • Temple & Webster Group Ltd (ASX: TPW) has seen its short interest ease to 7.6%. As with Kogan, short sellers may have been closing positions on the belief that the recent outbreak of COVID-19 has given ecommerce companies a major lift.
  • InvoCare Limited (ASX: IVC) is back in the top ten with short interest of 6.9%. There are concerns that InvoCare could be losing market share to its funeral industry rivals despite its investments and acquisitions.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, InvoCare Limited, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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