These are the 10 most shorted ASX shares

Why are short sellers betting on these ASX shares falling?

The words short selling in red against a black background

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) continues to be the most shorted ASX share with 18.5% of its shares held short again. Short sellers are betting approximately $2 billion on lithium prices and Pilbara Minerals shares continuing to fall.
  • Syrah Resources Ltd (ASX: SYR) has a short interest of 17.4%, which is flat week on week. Short sellers don't appear to believe China curbing its graphite exports will have much impact on Syrah's performance.
  • Core Lithium Ltd (ASX: CXO) has a short interest of 10.8%, which is up sharply week on week. This appears to have been driven by falling battery material prices.
  • Genesis Minerals Ltd (ASX: GMD) has seen its short interest remain flat at 10.5%. Short sellers appear to believe this gold miner could be facing serious integration risks after recent acquisitions.
  • IDP Education Ltd (ASX: IEL) has 9.8% of its shares held short, which is up slightly week on week. Short sellers have loaded up on this language testing company since it lost its monopoly in Canada.
  • Appen Ltd (ASX: APX) has seen its short interest fall to 9.6%. Short sellers will have been celebrating last week after this artificial intelligence data services company needed to raise funds again at a huge discount. Its shares crashed afterwards.
  • Sayona Mining Ltd (ASX: SYA) has 9.6% of its shares held short, which is up week on week. Short sellers appear to believe this lithium miner could also struggle due to falling battery materials prices.
  • Flight Centre Travel Group Ltd (ASX: FLT) has 9.35% of its shares held short, which is down week on week. Revenue margin headwinds are likely to be why short sellers are targeting this travel agent.
  • Bank of Queensland Ltd (ASX: BOQ) has a short interest of 8.5%, which is down from last week. Short sellers don't appear to believe this regional bank's performance will improve in the near term given the intense competition in mortgage loans.
  • Mesoblast Ltd (ASX: MSB) has 8% of its shares held short, which is down week on week. This biotech has been struggling to gain approval for its stem cell therapies.

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 man stands at the bottom of a spiral staircase looking up.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX utilities shares led the 11 market sectors for a third consecutive week.

Read more »

Two people comparing and analysing material.

Should you buy Metcash or Wesfarmers stock now?

I like the impressive hardware divisions of both of these businesses.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

These ASX 200 shares could rise 20% to 50%

Big returns could be on the cards for owners of these shares according to analysts.

Read more »

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Here are the top 10 ASX 200 shares today

It was a horrible way to end the trading week today for ASX investors.

Read more »

Piggy bank sinking in water symbolising a record low share price.
52-Week Lows

9 ASX 200 shares tumbling to 52-week lows today

Israel's strike on Iran on Friday dragged several ASX 200 shares to new depths.

Read more »

Female miner smiling at a mine site.
Share Gainers

Up 834% in a year, guess which ASX mining stock is hitting new all-time highs today

The ASX mining stock has gone from strength to strength over the past year.

Read more »

Broker written in white with a man drawing a yellow underline.
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 male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why COG, Karoon Energy, Netwealth, and Pilbara Minerals shares are dropping today

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

Read more »