These are the 10 most shorted ASX shares

Let's see why short sellers are betting on these ASX shares sinking deep into the red.

Close up of a sad young woman reading about declining share price on her phone.

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) is still the most shorted ASX share after its short interest rose to 21%. Weak lithium prices have been weighing heavily on sentiment (and profits).
  • Syrah Resources Ltd (ASX: SYR) has short interest of 17.6%, which is up week on week. Short sellers don't appear to believe that graphite prices will improve any time soon. This could mean that Syrah's cash burn continues for some time to come.
  • Core Lithium Ltd (ASX: CXO) has short interest of 12.1%, which is down since last week. This lithium miner has been struggling with falling lithium prices. So much so, it has announced plans to restrict production to reduce costs.
  • IDP Education Ltd (ASX: IEL) has 11.1% of its shares held short, which is up sharply week on week. Short sellers have been loading up on the language testing and student placement company's shares following its half-year results.
  • Sayona Mining Ltd (ASX: SYA) has 10.2% of its shares held short, which is down week on week. This lithium miner's shares were sold off (again) last week after a large shareholder sold its entire stake at a big discount.
  • Deep Yellow Limited (ASX: DYL) has seen its short interest ease to 9.8%. Short sellers appear to believe that the market is being too bullish on uranium prices.
  • Genesis Minerals Ltd (ASX: GMD) has seen its short interest rise slightly to 9.2%. This appears to have been driven by integration risks from a recent acquisition spree.
  • Chalice Mining Ltd (ASX: CHN) has short interest of 9%, which is up week on week. Short sellers have been targeting this mineral exploration company since it revealed that its production is still years away.
  • Weebit Nano Ltd (ASX: WBT) has short interest of 8.4%, which is down week on week. Valuation concerns appear to be behind this.
  • Flight Centre Travel Group Ltd (ASX: FLT) has 8.4% of its shares held short, which is up week on week. Short sellers appear to be expecting a soft result from the travel agent this week.

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 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

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

The ASX 200 kept up the selling this Wednesday, with another day in the red.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Westpac stock: Should you buy the 5.5% yield?

Is Westpac an easy buy today for that 5.5% yield?

Read more »

A young woman wearing a blue and white striped t-shirt blows air from her cheeks and looks up and to the side in a sign of disappointment after the ASX shares she owns went down today
Share Fallers

Why Australian Strategic Materials, Boral, Dubber, and Macquarie Technology are falling today

These shares are having a tough hump day. But why?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Is Core Lithium stock a good long-term investment?

Is this lithium dog a buy-the-dip opportunity today?

Read more »

Share Gainers

Why Bank of Queensland, DroneShield, Evolution Mining, and Lynas shares are storming higher today

These ASX shares are having a very strong session on hump day.

Read more »

Man looking concerned head in hands at laptop
Share Market News

Worried about an ASX stock market crash? Here are 5 reasons AMP says the bull market has legs

Despite the potential for a pullback, the ASX bull can keep on running, says AMP.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

Is Telstra stock a smart buy right now for dividends?

Would I buy Telstra shares for that hefty dividend yield today?

Read more »