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:
- Betmakers Technology Group Ltd (ASX: BET) has become the most shorted share on the Australian share market after its short interest rose to 15%. This betting technology company's shares are down 69% this year but short sellers appear to believe they can keep falling.
- Flight Centre Travel Group Ltd (ASX: FLT) has dropped from the top spot at long last after its short interest eased to 14.85%. Some short sellers may believe the worst is over for Flight Centre. Though, there's still an abnormally high level of shares held short.
- Block Inc (ASX: SQ2) has seen its short interest remain flat at 12.1%. Short sellers will have been disappointed to see this payments company's shares shoot higher last week after a strong quarterly update.
- Megaport Ltd (ASX: MP1) has seen its short interest fall to 11.6%. Megaport's shares came under pressure recently following the release of a soft quarterly update.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest remain at 11.1%. This pizza chain operator's shares sank into the red last week after a very disappointing trading update at its AGM.
- Perpetual Limited (ASX: PPT) has seen its short interest rise to 11.1%. This fund manager's shares charged higher last week after receiving a takeover approach.
- Breville Group Ltd (ASX: BRG) has seen its short interest rise to 9%. Concerns that the uncertain economic backdrop could impact consumer spending appears to be weighing on sentiment.
- Sayona Mining Ltd (ASX: SYA) has entered the top ten with short interest of 8.9%. This may be due to valuation and funding concerns for this lithium developer.
- Nanosonics Ltd (ASX: NAN) has short interest of 8.6%, which is up week on week. Short sellers continue to target this infection prevention company's shares due to its business model change in the key US market.
- Temple & Webster Group Ltd (ASX: TPW) has short interest of 8.3%, which is down week on week. Valuation concerns may be behind this high level of short interest. Temple & Webster trades at ~70x FY 2023 earnings.
