These are the 10 most shorted shares on the ASX Ltd (ASX:KGN) and Zip Co Ltd (ASX:Z1P) shares are among the most shorted shares on the ASX this week…
The post These are the 10 most shorted shares on the ASX appeared first on The Motley Fool Australia. –

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:

  • Flight Centre Travel Group Ltd (ASX: FLT) is now the most shorted ASX share after its short interest rose to 10.4%. Short sellers have been increasing their positions since the release of a trading update out of the travel agent. That update revealed that its second half loss is expected to be as large as the one recorded in the first half. This was materially more than the market anticipated.
  • Ltd (ASX: KGN) isn’t far behind after its short interest jumped to 10%. Once again, a recent trading update has caught the eye of short sellers. That update revealed that the ecommerce company’s growth has slowed, margins have contracted, and that it is having issues with inventory.
  • Resolute Mining Limited (ASX: RSG) has seen its short interest rise week on week to 9.8%. This gold miner’s shares have come under pressure due to regulatory issues at its Bibiani operation in Ghana and its disappointing production and guidance.
  • Tassal Group Limited (ASX: TGR) has short interest of 9.6%, which is flat week on week. This high level of short interest appears to have been driven by weakness in salmon prices.
  • Temple & Webster Group Ltd (ASX: TPW) has seen its short interest remain firm at 9.4%. This online furniture and homewares retailer appears to have been targeted by short sellers due to plans to invest materially in its growth at the expense of margins.
  • Webjet Limited (ASX: WEB) has seen its short interest rise week on week to 8.9%. Concerns over the stuttering travel market recovery and its valuation appear to be weighing on investor sentiment.
  • Megaport Ltd (ASX: MP1) has short interest of 8.1%, which is up again week on week. Short sellers may be going after the Network as a Service provider due to concerns over rising bond yields and its premium valuation.
  • Inghams Group Ltd (ASX: ING) has 7.9% of its shares held short, which is down slightly week on week. Investors may be nervous about its major contract renewal negotiation with Woolworths Group Ltd (ASX: WOW) and the sudden exit of its CEO.
  • Zip Co Ltd (ASX: Z1P) has short interest of 7.2%, which is up week on week. This high level of short interest is likely to be due to valuation concerns. Zip and fellow BNPL providers trade on very high multiples.
  • Metcash Limited (ASX: MTS) has seen its short interest edge lower again to 7.1%. Reports that trading conditions are reverting back to normal again in the supermarket industry could be weighing on sentiment. These trends appear to be favouring the big two supermarket chains ahead of independents.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, ltd, MEGAPORT FPO, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These are the 10 most shorted shares on the ASX appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!