These are the 10 most shorted ASX shares

Why are short sellers betting on these ASX shares falling?

most shorted ASX shares

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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 after its short interest rose to 19.3%. Short sellers are betting on lithium prices continuing to tumble.
  • Syrah Resources Ltd (ASX: SYR) has short interest of 16.9%, which is down slightly week on week. Short sellers appear to also believe that graphite demand and prices will continue to soften.
  • Appen Ltd (ASX: APX) has seen its short interest jump to 11.3%. This artificial intelligence (AI) data services company has been struggling to become profitable again despite the AI boom. So much so, it needed to raise funds last month at a huge discount.
  • Core Lithium Ltd (ASX: CXO) has a short interest of 11.2%, which is up again week on week. This lithium miner hit a new 52-week low last week amid falling battery material prices.
  • Genesis Minerals Ltd (ASX: GMD) has seen its short interest ease to 9.9%. Short sellers are going after this gold miner despite the strong gold price. This may be due to integration risks from recent acquisitions.
  • Sayona Mining Ltd (ASX: SYA) has 9.7% of its shares held short, which is up week on week. This is yet another lithium miner that short sellers are targeting. Its shares also hit a new 52-week low last week.
  • Flight Centre Travel Group Ltd (ASX: FLT) has 9.3% of its shares held short, which is down slightly week on week. Short sellers appear to believe the market is too bullish on the travel agent's recovery.
  • IDP Education Ltd (ASX: IEL) has 9.1% of its shares held short, which is down week on week. Short interest in this language testing company surged after it lost its monopoly in Canada.
  • Bank of Queensland Ltd (ASX: BOQ) has a short interest of 8.3%, which is down from last week. This may have been driven by intense competition in Australian mortgage loans.
  • Lendlease Group (ASX: LLC) has entered the top ten with a short interest of 7.8%. Short sellers may believe the market is overestimating Lendlease's earnings due to tough market conditions.

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.

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