These are the 10 most shorted ASX shares

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

A bored woman looking at her computer, it's bad news.

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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) remains the most shorted ASX shares despite its short interest easing again to 20.2%. It seems that short sellers aren't expecting lithium prices to rebound any time soon.
  • Syrah Resources Ltd (ASX: SYR) has short interest of 17.1%, which is up strongly week on week. Short sellers have been increasing their positions since the graphite producer raised funds yet again earlier this month. They may believe that this points to tough trading conditions being here to stay for a while yet.
  • IDP Education Ltd (ASX: IEL) has 12.8% of its shares held short, which is up strongly week on week again. This language testing and student placement company has been targeted due to regulatory changes to student visas.
  • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise to 10.9%. Short sellers continue to load up on the travel agent's shares. They appear to believe that Flight Centre will have a tough second half to FY 2024.
  • Liontown Resources Ltd (ASX: LTR) has seen its short interest jump to 9.8%. Short sellers have been increasing their positions despite the lithium developer announcing debt funding for the Kathleen Valley Lithium Project.
  • Genesis Minerals Ltd (ASX: GMD) has seen its short interest ease again to 8.1%. It seems that short sellers have been closing positions in this gold miner after the precious metal hit a record high.
  • Core Lithium Ltd (ASX: CXO) has short interest of 8%, which is down week on week. Short sellers may have been buying back shares and locking in gains after this lithium miner's shares crashed deep into the red following its half-year results.
  • Deep Yellow Limited (ASX: DYL) has seen its short interest tumble to 7.5%. Short sellers appear to be closing their position in a hurry amid optimism over rising uranium prices.
  • Australian Clinical Labs Ltd (ASX: ACL) has short interest of 7.5%, which is down week on week. This pathology company has been having a rough time recently due to tough trading conditions.
  • Sayona Mining Ltd (ASX: SYA) has returned to the top ten with short interest of 7.2%. Falling lithium prices have weighed heavily on this lithium miner's shares and finances. Short sellers don't appear to believe things will improve in a hurry.

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.

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