Whilst the majority of investors are focused on buying shares which they believe will go up in value, there are investors out there doing the very opposite.
Short sellers will take short positions by borrowing shares to sell on market in the hope of buying them back at a cheaper price in the future.
According to data provided by ASIC, here are the 10 most shorted shares on the ASX this week:
- Syrah Resources Ltd (ASX: SYR) continues to be the most shorted share on the ASX with short interest of 20.2%. However, with its massive Balama graphite project now on the verge of opening, short sellers might want to be careful with this one.
- Orocobre Limited (ASX: ORE) has seen short interest fall slightly to 19%. A stronger-than-expected full-year result last week could have short sellers concerned that the lithium miner has turned a corner after a shaky 12 months.
- Western Areas Ltd (ASX: WSA) has seen its short interest drop sharply to 18%. Short interest has been on the slide since the nickel producer reported net profit after tax growth of 165% to $19.3 million.
- Myer Holdings Ltd (ASX: MYR) has 15.7% of its shares in the hands of short sellers. Short sellers have targeted the department store operator since it downgraded its full-year profit guidance.
- Independence Group NL (ASX: IGO) has seen its short interest slide to 14.2%. A rise in the gold price due to escalating tensions in North Korea may have short sellers hurrying to close positions.
- Select Harvests Limited (ASX: SHV) has 12.7% of its shares in the hands of short sellers. Last month the almond producer posted a 73% decrease in its reported net profit after tax following a tough 12 months.
- Retail Food Group Limited (ASX: RFG) has 12.3% of its shares held short. Last week the food and beverage company posted a 14% lift in net profit after tax to $75.7 million. Its shares finished the week 6% higher.
- JB Hi-Fi Limited (ASX: JBH) has short interest of 12.2%. The imminent arrival of Amazon in Australia appears to be weighing heavily on investor sentiment.
- Domino's Pizza Enterprises Ltd. (ASX: DMP) has 12.1% of its shares held short. Short sellers have been targeting the pizza chain operator since its full-year results fell short of its guidance last month.
- Ardent Leisure Group (ASX: AAD) has 11.7% of its shares in the hands of short sellers. Concerns over its theme parks and the underperformance of its Main Event chain in the United States may be behind the high level of short interest.
