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 most shorted share despite its short interest easing to 9.9%. Revenue margin headwinds and consumer spending concerns appear to be behind this.
- Pilbara Minerals Ltd (ASX: PLS) has a short interest of 9.7%, which is flat week on week. This appears to have been driven by concerns over the outlook for lithium prices.
- Syrah Resources Ltd (ASX: SYR) has a short interest of 9.1%, which is down week on week. Weak graphite prices are weighing heavily on its performance.
- Elders Ltd (ASX: ELD) has seen its short interest increase again to 9%. This agribusiness company has been struggling amid tough trading conditions in the agricultural sector.
- IDP Education Ltd (ASX: IEL) has 8.7% of its shares held short, which is up strongly week on week. Short sellers aren't giving up on this language testing and student placement company despite its strong result in FY 2023.
- Brainchip Holdings Ltd (ASX: BRN) has seen its short interest ease to 7.6%. It looks as though some short sellers were forced to close their positions after the struggling semiconductor company was kicked out of the ASX 200 index.
- JB Hi-Fi Limited (ASX: JBH) has a short interest of 7.4%, which is down week on week. The weak consumer spending outlook could make the next 12 months tough for this retail giant.
- Appen Ltd (ASX: APX) has seen its short interest reduce to 7.3%. Short sellers have done very well with this artificial intelligence data services company. Its shares have been hammered due to a significant deterioration in its performance.
- Core Lithium Ltd (ASX: CXO) has returned to the top ten with a short interest of 7.3%. Short sellers aren't letting up on this lithium miner despite its shares crashing 75% over the last 12 months.
- Mesoblast Ltd (ASX: MSB) is back in the top ten with a short interest of 7.3%. Short sellers don't appear positive that this biotech will have any clinical success in the near future.
