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 with short interest of 20.7%. This is down slightly week on week. Short sellers appear to believe that lithium prices will remain at low levels for years.
- IDP Education Ltd (ASX: IEL) has 13.3% of its shares held short, which is down slightly week on week. This language testing and student placement company has warned that student visa changes in a number of key markets are going to weigh on its near term performance.
- Liontown Resources Ltd (ASX: LTR) has 11.4% of its share held short, which is up week on week again. This lithium developer's shares lost almost 70% of their value in FY24. Short sellers appear to believe they can fall further.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rebound to 10.3%. Concerns over weak consumer spending and revenue margin headwinds could be behind this.
- Sayona Mining Ltd (ASX: SYA) has short interest of 9.9%, which is up since last week. This lithium miner is currently paying more to produce lithium than it receives from buyers.
- Syrah Resources Ltd (ASX: SYR) has short interest of 9.7%, which is down week on week. This graphite miner is currently battling production suspensions and further cash burn due to weak battery material prices.
- Chalice Mining Ltd (ASX: CHN) has short interest of 9.7%, which is up week on week. Short sellers aren't letting up on this mineral exploration company's shares despite them being down almost 80% over the last 12 months.
- Westgold Resources Ltd (ASX: WGX) has short interest of 9.3%, which is down sharply week on week. This short interest may be due to doubts over the gold miner's proposed merger with Canada-based Karoa Resources.
- Australian Clinical Labs Ltd (ASX: ACL) has short interest of 9.2%, which is up since last week. This health imaging company warned that is expecting to report another sizeable decline in profits in FY 2024.
- Lynas Rare Earths Ltd (ASX: LYC) is a new entry in the top ten with short interest of 8.5%. Weak rare earths prices are likely to be why short sellers are targeting the miner.
