These are the 10 most shorted ASX shares

Short sellers are targeting these ASX shares…

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Once a 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:

  • Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share after its short interest rose to 13.4%. Short sellers have been increasing their positions amid the emergence of the Omicron variant of COVID-19.
  • Ltd (ASX: KGN) has seen its short interest remain flat at 12%. This ecommerce company was dealt another blow today when Dow Jones Indices announced that it would be kicked out of the ASX 200 index.
  • Redbubble Ltd (ASX: RBL) has short interest of 11.2%, which is up again week on week. As with Kogan, Redbubble has just been kicked out of the ASX 200 index at the next quarterly rebalance. This follows a period of underperformance by both its operations and its shares.
  • Webjet Limited (ASX: WEB) has short interest of 9.2%, which is up week on week. The emergence of the Omicron variant of COVID-19 has investors concerned that the travel market recovery could be derailed.
  • Cooper Energy Ltd (ASX: COE) has 9.1% of its shares held short, which is up week on week again. The company’s troubled Orbost gas processing plant continues to weigh on sentiment.
  • Mesoblast limited (ASX: MSB) has short interest of 9%, which is up week on week. Concerns over this biotech company’s precarious financial position appear to be behind this high level of short interest.
  • Zip Co Ltd (ASX: Z1P) has seen its short interest fall to 9%. Short sellers have been targeting Zip this year amid intense competition in the BNPL market and rising costs.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.2% of its shares held short, which is down notably week on week. Short sellers have been going after this defence and space company due partly to concerns over its cash flows.
  • Omni Bridgeway Ltd (ASX: OBL) has entered the top ten with short interest of 7.8%. It is unclear why short sellers are targeting the class action funder. Particularly given how last week Goldman Sachs reiterated its conviction buy rating and lifted its price target to $5.35.
  • BHP Group Ltd (ASX: BHP) is back in the top ten with short interest of 7.5%. Short sellers may believe that weaker iron ore prices will lead to the mining giant falling short of expectations.

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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 and ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet 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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