These are the 10 most shorted shares on the ASX

Short sellers are targeting these 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:

  • Ltd (ASX: KGN) is back as the most shorted ASX share after its short interest rebounded week on week to 11.5%. This ecommerce company has been struggling with inventory issues. Short sellers don't appear to believe they are going away despite recent lockdowns potentially boosting sales.
  • Webjet Limited (ASX: WEB) has seen its short interest ease to 10.6%. Lockdowns and border restrictions continue to weigh heavily on this online travel agent's shares.
  • Inghams Group Ltd (ASX: ING) has 8.8% of its shares held short, which is flat week on week once again. Concerns over an upcoming major contract renewal with a supermarket giant continue to weigh on sentiment.
  • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest slide to 8.7%. This appears to have been driven by fears that the travel market recovery could take longer than expected because of the Delta strain of COVID-19.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.1% of its shares held short, which is flat week on week. Short sellers may be targeting Electro Optic Systems due to supply chain and cash flow concerns.
  • Zip Co Ltd (ASX: Z1P) has short interest of 8%, which is flat week on week. Valuation and competition concerns could be why short sellers have taken short positions in this buy now pay later provider.
  • Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 7.8%. This ecommerce company has been targeted by short sellers since it announced plans to sacrifice margins in the hope of growing its market share.
  • Tassal Group Limited (ASX: TGR) has short interest of 7.8%, which is up slightly week on week. Although salmon prices have been tipped to rebound, some short sellers aren't in a rush to close positions.
  • Resolute Mining Limited (ASX: RSG) has seen its short interest fall to 7.7%. This gold miner's shares have come under significant pressure over the last 12 months due to operational issues and production downgrades.
  • A2 Milk Company Ltd (ASX: A2M) is back in the top ten with short interest of 6.8%. Concerns over weakness in the daigou channel and the growing popularity of Chinese infant formula brands has been weighing on its shares.

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, ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, ltd, and Webjet Ltd. The Motley Fool Australia has recommended A2 Milk, Flight Centre Travel Group 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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