These are the 10 most shorted ASX shares

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

A business woman looks unhappy while she flies a red flag at her laptop.

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 once again to a sizeable 18.5%. Approximately $2 billion is being bet on the lithium miner's shares falling. Short sellers appear confident that lithium prices are going to sink.
  • Syrah Resources Ltd (ASX: SYR) has a short interest of 17.4%, which is up week on week again. Short sellers continue to build their positions despite China putting restrictions on graphite exports.
  • Genesis Minerals Ltd (ASX: GMD) has seen its short interest ease slightly to 10.5%. This miner has been on an acquisition spree recently. Traders may be concerned over integration risks.
  • Core Lithium Ltd (ASX: CXO) has a short interest of 10.1%, which is down week on week. Falling battery material prices appear to be behind this.
  • Appen Ltd (ASX: APX) has seen its short interest fall to 10%. This artificial intelligence data services company has been greatly underperforming and short sellers don't appear to believe much will change in the near term.
  • IDP Education Ltd (ASX: IEL) has 9.7% of its shares held short, which is down slightly week on week. Short sellers appear to believe the loss of its monopoly in Canadian language testing could be a big blow to earnings.
  • Flight Centre Travel Group Ltd (ASX: FLT) has 9.45% of its shares held short, which is up week on week. Short sellers appear to believe that revenue margin headwinds won't go away any time soon.
  • Sayona Mining Ltd (ASX: SYA) has 9.4% of its shares held short, which is up week on week. This is yet another ASX lithium share that short sellers have loaded up on.
  • Bank of Queensland Ltd (ASX: BOQ) has a short interest of 8.8%, which is flat from last week. Weak volume momentum, intense competition in mortgage loans, and inflationary pressures on costs are likely to be behind this.
  • Mesoblast Ltd (ASX: MSB) has 8.2% of its shares held short, which is flat week on week. This biotech has been struggling to get its products approved by the FDA. This has led to countless capital raisings and a very poor share price performance.

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 sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Market News

ASX shares could get a massive boost on Tuesday. Here's why

Australia's inflation is running hotter than other comparable economies, and experts are divided on how fast relief could be coming.

Read more »

Happy man working on his laptop.
Share Market News

5 things to watch on the ASX 200 on Monday

The ASX 200 is expected to start the week on a very positive note.

Read more »

Three young girls on a farm hold bunches of carrots triumphantly above their heads.
Dividend Investing

Income investors: 3 ASX dividend shares that could rally in 2024

Don't just grab the stocks with the highest yields. Check out these picks that have potential to bring back capital…

Read more »

Woman and man calculating a dividend yield.
Share Market News

3 things ASX investors should watch this week

The next few days will be massive for your stock portfolio. Keep your eyes on these events especially.

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Broker Notes

Goldman Sachs says these ASX 200 shares can rise 20% to 50%

There could be some big returns on offer with these stocks in 2024.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave the thumbs up to these ASX shares last week. Why are they bullish?

Read more »

Man jumping in water with a floatable flamingo, symbolising passive income.
Investing Strategies

Looking to quit work and live off ASX passive income? Here's how I'd aim to make it happen

If you want to tell your boss where to go, you will have to read this.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's what Westpac says the RBA will do with interest rates next week

Will the RBA increase rates again next week?

Read more »