These are the 10 most shorted ASX shares

Why are short sellers betting on these ASX shares falling?

most shorted ASX shares

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 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.

More on Share Market News

Hand with Australian dollar notes handing the money to another hand symbolising ex-dividend date.
Share Market News

Morgans says these ASX shares are buys (with special dividends to come)

Here's what the broker is saying about these shares.

Read more »

Investor sitting in front of multiple screens watching share prices
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 with rocket wings which have flames coming out of them.
Broker Notes

These ASX shares could rise 30% to 50% in 12 months

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

Read more »

View from below of a man with a shovel standing by a hole he has dug in the garden, with blue sky in the background.
Resources Shares

Here's why I'm steering clear of Core Lithium shares

Lithium has bottomed out over the past year, but here's why this is NOT the bargain stock to buy.

Read more »

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

Why these 4 ASX 200 shares grabbed the Motley Fool's headlines this week

From stellar earnings results to a multi-billion-dollar acquisition approval, these four ASX 200 shares made a big splash this week.

Read more »

A happy older couple relax in a hammock together as they think about enjoying life with a passive income stream.
Investing Strategies

I'd aim to turn a $20,000 savings account into $25,400 of passive income

It doesn't matter if you don't have a pile of cash to start investing. The important thing is to start.

Read more »

A businessman hugs his computer and smiles.
Opinions

3 ASX shares to buy and hold forever

I like these stocks as ultra-long term ideas.

Read more »

A man with grahpics of robot arms, indicating a share price movement in ASX robotics and tech companies
Share Market News

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

Tech shares led the pack for a second week, clocking a near 10% gain over the fortnight.

Read more »