These are the 10 most shorted ASX shares

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:

  • 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.
  • 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.

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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, 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 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.

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