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) starts the year as the most shorted ASX share with 20.4% of its shares held short. This is up slightly week on week. Short sellers appear to be betting on lithium weakness continuing in 2024.
- Syrah Resources Ltd (ASX: SYR) has short interest of 14.3%, which is down slightly week on week. Softening graphite demand from the electric vehicle market has weighed heavily on its performance and shares.
- Core Lithium Ltd (ASX: CXO) has short interest of 12.3%, which is flat week on week. This lithium miner's shares were the worst performers on the ASX 200 in 2023.
- Deep Yellow Limited (ASX: DYL) has seen its short interest jump to 10.2%. Short sellers appear to believe the market is too optimistic on uranium.
- Genesis Minerals Ltd (ASX: GMD) has seen its short interest ease to 9.1%. This may be due to the belief that this gold miner is facing integration risks from recent acquisitions.
- IDP Education Ltd (ASX: IEL) has 8.8% of its shares held short, which is up week on week. Short sellers have targeted the company following student visa changes and the loss of its monopoly in Canada.
- Sayona Mining Ltd (ASX: SYA) has 8.6% of its shares held short, which is flat week on week. The market may be concerned about this lithium miner's margins following heavy declines for the battery-making ingredient.
- Flight Centre Travel Group Ltd (ASX: FLT) has 8.5% of its shares held short, which is flat week on week. Short sellers were going after the travel agent giant due to revenue margin pressures.
- Liontown Resources Ltd (ASX: LTR) have entered the top ten with short interest of 8.2%. It is yet another lithium share being targeted by short sellers.
- Peninsula Energy Ltd (ASX: PEN) has seen its short interest increase slightly to 7.8%. It is another ASX uranium share that short sellers believe the market is too bullish on.
