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:
- Zip Co Ltd (ASX: Z1P) has become the most shorted share on the ASX after its short interest jumped to 10.6%. Short sellers have been increasing their positions since rumours emerged claiming that Apple is planning to enter the BNPL market.
- Webjet Limited (ASX: WEB) has seen its short interest ease to 10.3%. This online travel agent’s shares have been targeted amid concerns over recent lockdowns and the spread of the Delta strain of COVID-19.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest climb to 10.2%. Short sellers have been shorting this travel agent’s shares due to concerns that the delayed travel market recovery could push back Flight Centre returning to profit.
- Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is down week on week. A major contract renewal with a supermarket giant continues to weigh on investor sentiment. That current contract is due to end in August.
- Kogan.com Ltd (ASX: KGN) has short interest of 7.7%, which is down notably week on week. Short sellers may be closing positions on the belief that recent lockdowns will be a boost to its sales and help ease inventory issues.
- Mesoblast limited (ASX: MSB) is back in the top ten with short interest of 6.5%. This biotech company has had a very turbulent 12 months due to a number of disappointing trial updates.
- Tassal Group Limited (ASX: TGR) has short interest of 6.1%, which is down week on week. Short sellers may be closing positions after salmon prices were tipped to improve.
- Metcash Limited (ASX: MTS) has seen its short interest ease to 6%. There are concerns that a post-COVID reversal in consumer trends will be less than favourable for Metcash.
- A2 Milk Company Ltd (ASX: A2M) has seen its short interest fall to 6%. This infant formula company has been targeted by short sellers due to weakness in the daigou channel and the growing popularity of Chinese infant formula brands.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 5.8% of its shares held short, which is down week on week again. A strong update by the communications, defence, and space company last week may have spooked short sellers.