It may be the Christmas period but that hasn't stopped short sellers from targeting some of the most popular shares on the ASX.
According to ASIC's most recent data, the 10 most shorted shares on the ASX at the moment are as follows:
- Myer Holdings Ltd (ASX: MYR) looks set to finish the year as Australia's most shorted share. The department store operator has 16.6% of its shares held short. As Myer has shown a big improvement in its performance recently, short sellers may want to be careful with this one.
- Aconex Ltd (ASX: ACX) has once again seen short interest rise to a new high. The software-as-a-service company has 15.6% of its shares in the hands of short sellers. Up from 14.8% last week.
- Western Areas Ltd (ASX: WSA) has seen short interest increase slightly to 13.2%. Nickel prices have been tipped to recover in 2017, so I wouldn't be surprised to see short interest fall in the coming months.
- Syrah Resources Ltd (ASX: SYR) has 11.3% of its shares in the hands of short sellers. Short interest rose week-on-week despite the graphite miner being touted as a potential takeover target of South32 Ltd (ASX: S32).
- Nine Entertainment Co Holdings Ltd (ASX: NEC) has short interest of 11.1%, down slightly from last week. Despite the drop, investors appear to be reasonably bearish on the media company's prospects.
- TFS Corporation Limited (ASX: TFC) continues to be a favourite of short sellers. This week the sandalwood plantation manager has seen short interest increase to 11%.
- Metcash Limited (ASX: MTS) has 10.9% of its shares held short. For the second week in a row short interest in the wholesale distributor has fallen, possibly hinting that investor sentiment is shifting positively.
- Vocus Communications Limited (ASX: VOC) has 9.5% of its shares in the hands of short sellers. Although the telco company's shares have had a horrendous 2016, I'm tipping them to perform far better in 2017.
- Bellamy's Australia Ltd (ASX: BAL) has short interest of 9.3%. The embattled infant formula producer's shares remain suspended and are not expected to reappear until mid-January.
- Estia Health Ltd (ASX: EHE) is a new addition to the top 10 with 9.1% of its shares held short. The aged care operator has had a disastrous year which has seen its share price fall by two-thirds. Clearly some investors think it has further to fall still.
