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 its run as the most shorted ASX share after its short interest rose week on week to 21.2%. Significant lithium price weakness is behind this.
- Syrah Resources Ltd (ASX: SYR) has short interest of 14.9%, which is up week on week. This graphite producer has been battling low prices by limiting production from its Balama operation to save cash.
- Core Lithium Ltd (ASX: CXO) has short interest of 13.6%, which is flat week on week. This lithium miner's shares have fallen heavily after it announced plans to suspend production to conserve cash.
- Deep Yellow Limited (ASX: DYL) has seen its short interest ease slightly to 10.3%. Short sellers will have been disappointed to see its shares jump last week on rising uranium prices.
- Sayona Mining Ltd (ASX: SYA) has 9.8% of its shares held short, which is up week on week. The market appears concerned about what weak lithium prices will mean for its operations.
- Peninsula Energy Ltd (ASX: PEN) has seen its short interest increase to 9.5%. Short sellers may regret loading up on this ASX uranium share after it jumped last week in response to strong gains by the chemical element.
- IDP Education Ltd (ASX: IEL) has 9.4% of its shares held short, which is up week on week. This language testing and student placement company's shares have lost a third of their value over the last 12 months amid concerns over the impact of student visa changes and the loss of its monopoly in Canada.
- Genesis Minerals Ltd (ASX: GMD) has seen its short interest remain flat at 8.9%. Short sellers appear concerned with integration risks from recent acquisitions.
- Flight Centre Travel Group Ltd (ASX: FLT) has 8.9% of its shares held short, which is up slightly week on week. This high level of short interest has been driven by revenue margin headwinds.
- Liontown Resources Ltd (ASX: LTR) has short interest of 8.3%, which is up since last week. It is another share that short sellers are targeting due to falling lithium prices.
