These are the 10 most shorted ASX shares

Short sellers are targeting these ASX shares…

most shorted shares webjet

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

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.

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, 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 A2 Milk and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Woman holding gold bar and cheering.
Gold

Why Macquarie expects this surging ASX 200 gold stock could leap another 40%

Macquarie forecasts another year of strong outperformance from this fast-rising ASX 200 gold miner.

Read more »

A young woman looks at here phone as she strides out in an airport dragging her wheelie bag behind her and smiling widely.
Broker Notes

Macquarie tips 15% upside for this ASX 200 industrials stock

Is this transportation business preparing for take-off?

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why 29Metals, Atlas Arteria, DroneShield, and Yancoal shares are falling today

Let's see why these shares are ending the week in the red.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Record Highs

Big ASX 200 news! Market hits 8,700-point record high

It's a historic day for the ASX.

Read more »