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:
- Flight Centre Travel Group Ltd (ASX: FLT) remains the Australian share market's most shorted share after its short interest rose to 15.4%. Although there have been some encouraging updates out of the travel sector, short sellers appear to believe investors are expecting too much given how rising living costs are squeezing budgets. Particularly in Europe where energy prices have risen extraordinarily.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 13.4%. Short sellers have been adding to their positions after this betting technology company posted a massive $89.2 million loss in FY 2022.
- De Grey Mining Limited (ASX: DEG) has short interest of 10.6%, which is down slightly week on week. There may be concerns that cost inflation could lead to the Mallina Gold Project costing more than expected.
- Block Inc (ASX: SQ2) has short interest of 10.4%, which is down slightly week on week once again. Concerns over a potential US recession and the market's aversion to loss-making tech stocks have been weighing on Block's shares.
- Nanosonics Ltd (ASX: NAN) has short interest of 10.3%, which is down a touch week on week. Rising costs, a disappointing full year result, and product launch delays have hit this infection prevention company's shares.
- Lake Resources N.L. (ASX: LKE) has short interest of 9.9%, which is down week on week. This lithium developer's shares have rallied very strongly recently but short sellers aren't giving up on it.
- Zip Co Ltd (ASX: ZIP) has seen its short interest ease slightly to 9.5%. This buy now pay later provider's shares have just been dealt a blow by being dumped out of the ASX 200 index at the next rebalance.
- City Chic Collective Ltd (ASX: CCX) has jumped into the top ten with short interest of 9.35%. Short sellers will have been pleased to see this plus sized fashion retailer's shares crash after the release of a very disappointing full year result. City Chic's shares have also just been kicked out of the ASX 200.
- Regis Resources Limited (ASX: RRL) has short interest of 8%, which is down week on week yet again. Short sellers appear to be closing positions slowly but surely. Production issues have been weighing on this gold miner's shares.
- Inghams Group Ltd (ASX: ING) has short interest of 8%, which is down week on week. This poultry company may have been targeted due to concerns over higher input costs.
