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) remains the most shorted share on the Australian share market with short interest of 15.9%. Short sellers aren't giving up on this betting technology company despite its shares crashing 65% in 2022.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise slightly to 14.6%. This travel agent giant's shares were under pressure last week following the release of a disappointing trading update.
- Block Inc (ASX: SQ2) has seen its short interest ease to 12.2%. Interestingly, this is almost triple the short interest of the payments company's NYSE listed shares.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest fall to 11.4%. This pizza chain operator's shares have taken a hit this year after inflationary pressures weighed on its performance.
- Megaport Ltd (ASX: MP1) has seen its short interest ease to 11.1%. A softer than expected first quarter update from the network as a service operator has put significant pressure on its shares.
- Perpetual Limited (ASX: PPT) has seen its short interest drop to 9.5%. Short sellers will have been pleased to see this fund manager's shares tumble last week after the courts pressured the company into completing its acquisition of Pendal Group Ltd (ASX: PDL). This is likely to scupper its own proposed takeover by private equity.
- Nanosonics Ltd (ASX: NAN) has short interest of 9.1%, which is up week on week again. Unfortunately for short sellers, this infection prevention company released a trading update last week which revealed strong sales growth so far in FY 2023.
- Breville Group Ltd (ASX: BRG) has seen its short interest slide to 8.8%. Short sellers may have been closing positions after the appliance manufacturer's shares jumped following a solid first quarter update.
- St Barbara Ltd (ASX: SBM) has entered the top ten with short interest of 8.6%. This struggling gold miner's shares have fallen almost 60% this year. Short sellers appear to believe they can keep falling.
- Temple & Webster Group Ltd (ASX: TPW) has short interest of 8.5%, which is down week on week. This may be due to concerns over a potential ecommerce slowdown.
