These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

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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) continues its long run as the most shorted ASX share with short interest of 21.2%. This is down slightly week on week. It appears that short sellers are not expecting lithium prices to recover any time soon.
  • IDP Education Ltd (ASX: IEL) has 16.7% of its shares held short, which is up week on week. Short sellers have been targeting this language testing and student placement company due to student visa changes in a number of key markets. They may believe that this will lead to IDP falling short of expectations.
  • Syrah Resources Ltd (ASX: SYR) has short interest of 13%, which is down slightly week on week. This graphite miner has been battling weak battery materials prices and burning through its cash reserves.
  • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rebound week on week to 11.6%. Short sellers are not being put off by Flight Centre recently revealing that it expects record sales in FY 2024.
  • Liontown Resources Ltd (ASX: LTR) has 9.9% of its share held short, which is down week on week again. Short sellers have been closing positions this month after Liontown made good progress with its Kathleen Valley Lithium Project.
  • Australian Clinical Labs Ltd (ASX: ACL) has returned to the top ten with short interest of 9.3%. This pathology services company is guiding to another sharp decline in earnings in FY 2024.
  • Sayona Mining Ltd (ASX: SYA) has short interest of 9.1%, which is up sharply week on week. This lithium miner is burning through cash at present by spending more to produce its lithium than it receives for it.
  • Westgold Resources Ltd (ASX: WGX) has short interest of 8.8%, which is up for a third week in a row. Short sellers appear unsure about the gold miner's plan to merge with Canada-based Karoa Resources.
  • Chalice Mining Ltd (ASX: CHN) has short interest of 8.3%, which is up week on week. Short sellers continue to target the mineral exploration company despite the favourable Federal Budget.
  • Core Lithium Ltd (ASX: CXO) has short interest of 7.8%, which is flat week on week. Core Lithium has been forced to suspended mining activities to conserve cash due to weak prices.

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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