These are the 10 most shorted ASX shares

Why are short sellers betting big on these ASX shares dropping in value?

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

  • Pilbara Minerals Ltd (ASX: PLS) remains the most shorted ASX share after its short interest increased yet again to 16.9%. Short sellers appear convinced that lithium prices are on a downward spiral.
  • Syrah Resources Ltd (ASX: SYR) has a short interest of 15%, which is up week on week again. Short sellers aren't closing positions despite news that China is curbing its graphite exports.
  • Genesis Minerals Ltd (ASX: GMD) has seen its short interest ease to 11%. This gold miner is on a bit of an acquisition spree at the moment. Short sellers may see integration risks or believe it is overpaying.
  • Core Lithium Ltd (ASX: CXO) has a short interest of 10.5%, which is down week on week. Falling lithium prices continue to weigh on investor sentiment.
  • Appen Ltd (ASX: APX) has seen its short interest rise to 10.1%. This artificial intelligence data services company has been battling against intense competition and new technologies.
  • IDP Education Ltd (ASX: IEL) has 9.6% of its shares held short, which is up week on week. Short sellers seem to believe this language testing company could fall short of expectations due to the loss of its monopoly in Canada.
  • Flight Centre Travel Group Ltd (ASX: FLT) has 9.55% of its shares held short, which is up week on week. Revenue margin headwinds and softening consumer spending could be why short sellers are going after this travel giant.
  • Sayona Mining Ltd (ASX: SYA) has 9.5% of its shares held short, which is up week on week. Falling lithium prices and capital raising concerns may be behind this.
  • Bank of Queensland Ltd (ASX: BOQ) has a short interest of 9.2%, which is up sharply since last week. Inflationary pressures on costs and weak volume momentum appear to be behind this.
  • Mesoblast Ltd (ASX: MSB) has 8.1% of its shares held short, which is up slightly since last week. This biotechnology company has been struggling to gain FDA approval for its products for years.

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. has positions in and has recommended Appen and Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group and Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A woman stares at the candle on her cake, her birthday has fizzled.
Share Market News

Here are the top 10 ASX 200 shares today

The markets ended the trading week on a sad note today.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Core Lithium share price hits a multi-year low: Will the tide change soon?

Are analysts now seeing value emerge from the lithium miner's shares?

Read more »

Four young friends on a road trip smile and laugh as they sit on roof of their car.
ETFs

Records tumble! Hot ASX ETFs smash all-time highs again on Friday

It's a little strange to see these ETFs hit new highs on a red day for the ASX...

Read more »

A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.
Opinions

Down 40% in under 3 years, is the Lynas share price due a bounce?

Is there any hope for Lynas shares?

Read more »

Three exuberant runners dash towards the camera. One raises her arms in triumph; another jumps in the air with arms raised. The third runner gives a satisfied smile.
Share Gainers

3 ASX 200 shares going gangbusters in June

ASX 200 investors have sent these three stocks soaring in June. But why?

Read more »

A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.
Share Market News

Is there any chance of an interest rate cut in Australia next week?

Here's what the experts think will happen.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Share Fallers

Why Core Lithium, Deterra Royalties, Northern Star, and Opthea shares are dropping

These shares are ending the week deep in the red. But why?

Read more »