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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 still the most shorted share on the Australian share market after its short interest rose to 15.3%. Short sellers appear to be betting against a swift travel market recovery.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease to 14.1%. Much to the delight of short sellers, this betting technology company's shares crashed lower following its quarterly update last week. The Betmakers share price is now down 67% year to date.
- Megaport Ltd (ASX: MP1) has seen its short interest rise to 12.2%. Short sellers have been adding to their positions after Megaport released a soft quarterly update earlier this month.
- Block Inc (ASX: SQ2) has seen its short interest rise to 12.1%. This may be down to concerns over regulatory pressure in the BNPL market and global recession fears.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 11.1%. Fears that cost inflation could be weighing on this pizza chain operator's performance appear to be the reason for this high level of short interest. We won't have to wait long to find out if this is the case. Domino's holds its AGM this week.
- Perpetual Limited (ASX: PPT) has seen its short interest jump again to 10.9%. A number of fund managers have been under pressure this year due to tough operating conditions.
- Lake Resources N.L. (ASX: LKE) has short interest of 8.7%, which is down week on week again. Short sellers have been targeting this lithium developer due to doubts over the DLE technology that is integral to the Kachi lithium project.
- Temple & Webster Group Ltd (ASX: TPW) has returned to the top ten with short interest of 8.6%. Short sellers will be disappointed to see that this ecommerce share is shooting higher today on no news.
- Breville Group Ltd (ASX: BRG) has seen its short interest rise to 8.5%. This may be due to concerns that the uncertain economic backdrop could impact consumer spending.
- Nanosonics Ltd (ASX: NAN) has short interest of 8.4%, which is up week on week. This appears to have been driven by the uncertainty caused from this infection prevention company's disruptive business model change in the key US market.
