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:
- Boss Energy Ltd (ASX: BOE) continues its long run as the most shorted ASX share after its short interest increased again to 25.6%. Short sellers are betting against the uranium market.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest rise week on week again to 16.7%. This uranium miner temporarily suspended its operations and removed its guidance for FY 2025 due to operational issues.
- Deep Yellow Limited (ASX: DYL) has 13.1% of its shares held short, which is up week on week. This means the top three most shorted shares are all uranium producers.
- Mineral Resources Ltd (ASX: MIN) has short interest of 13.2%, which is up since last week. This mining and mining services company's shares have been crushed this year but short sellers are not giving up yet.
- IDP Education Ltd (ASX: IEL) has 13.1% of its shares held short, which is up week on week. Short sellers have been targeting this student placement and language testing company s due to very tough trading conditions.
- Pilbara Minerals Ltd (ASX: PLS) short interest of 12.6%, which is down week on week. This lithium miner's shares have crashed this year amid the market selloff and falling lithium spot prices. Increasing supply from Africa and China has weighed heavily on the prices.
- Liontown Resources Ltd (ASX: LTR) has seen its short interest increase to 11.8%. This has also been driven by falling lithium spot prices.
- Lotus Resources Ltd (ASX: LOT) has entered the top ten with short interest of 11.1%. This means that there are no less than four ASX uranium stocks in the top ten now. Short sellers certainly are bearish on the chemical element.
- Lifestyle Communities Ltd (ASX: LIC) has 10.3% of its shares held short, which is up slightly since last week. Negative media coverage has weighed on this retirement communities company.
- Cettire Ltd (ASX: CTT) has short interest of 10.3%, which is up week on week. This online luxury products retailer looks set to be negatively impacted by trade tariffs.
