Every Monday I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.
I do this because I think it is worth keeping an eye on short interest levels as high levels can sometimes be a sign that something isn't quite right.
With that in mind, here are the 10 most shorted shares on the ASX this week:
- Syrah Resources Ltd (ASX: SYR) has become the most shorted share on the ASX again with an increase in short interest to 17.4%. Last week the graphite miner downgraded its first-quarter graphite price guidance around six weeks after providing it.
- Inghams Group Ltd (ASX: ING) has short interest of 17.2%, which is steady week on week. Short sellers have been targeting the poultry producer's shares due to the impact that the droughts have had on its input costs.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest increase again, this time to 16%. Short sellers continue to remain negative on Galaxy due to falling lithium prices because of weaker demand for the battery making ingredient in China.
- JB Hi-Fi Limited (ASX: JBH) has seen its short interest jump significantly to 15.1%. News that rival Harvey Norman Limited (ASX: HVN) has had a tough start to the second half in the Australian market may be behind this increase.
- NEXTDC Limited (ASX: NXT) has short interest of 12.6%, up strongly week on week. The data centre operator's shares have come under pressure since the release of its half year results.
- Orocobre Limited (ASX: ORE) has short interest of 12.5%, which is flat week on week. Short interest has been on the rise since its quarterly pricing guidance disappointed once again.
- BWX Ltd (ASX: BWX) has seen its short interest slide to 11.4%. Despite a positive end to the first half, it appears as though short sellers aren't convinced that the personal care company is over the worst of its issues yet.
- Metcash Limited (ASX: MTS) has 11.1% of its shares in the hands of short sellers, which is down once again on last week's numbers. Increasing competition in the supermarket industry is likely to be behind the high level of short interest.
- Speedcast International Ltd (ASX: SDA) has entered the top ten with short interest of 11%. Although the Speedcast share price has fallen heavily over the last 12 months, short sellers appear to believe its shares can still go lower.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest fall further, this time to 10.7%. Short sellers may be closing positions after the department store operator's shares rose strongly following the release a better than expected half year result.
