Here are the 10 most shorted ASX shares

Short sellers are betting on these ASX shares sinking from current levels…

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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) remains the most shorted ASX share despite its short interest falling heavily to 12.6%. Short sellers may have been closing positions after the travel agent's recent update.
  • Betmakers Technology Group Ltd (ASX: BET) has seen its short interest edge lower to 12.5%. Competition, cash burn, and valuation concerns may be weighing on this betting technology company's shares.
  • Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.9%. Short sellers have been adding to their positions since the network as a service provider released a disappointing quarterly update.
  • Core Lithium Ltd (ASX: CXO) has short interest of 9.6%, which is up week on week. Valuation concerns have been weighing on this lithium share.
  • Sayona Mining Ltd (ASX: SYA) has 9.3% of its shares held short, which is up slightly week on week. Fears that lithium prices have peaked could be behind this high level of short interest.
  • Liontown Resources Ltd (ASX: LTR) has short interest of 7.7%, which is down slightly week on week. Once again, lithium price concerns appear to be behind this. In addition, project cost blow outs have sparked fears that a capital raising could be coming.
  • Lake Resources N.L. (ASX: LKE) is a fourth lithium share in the list with 7.6% of its shares held short, which is up week on week. J Capital is shorting this lithium developer due to concerns over its technology and project funding.
  • Pointsbet Holdings Ltd (ASX: PBH) is back in the top ten with 7.3% of its shares held short. Competition and cash burn concerns appear to be why short sellers are going after this sports betting company.
  • NextDC Ltd (ASX: NXT) has returned to the top ten with short interest of 7%. Short sellers may have concerns that economic conditions could weigh on its performance.
  • Zip Co Ltd (ASX: ZIP) has short interest of 6.9%, which is flat week on week. Short sellers appear to be doubting that Zip will be able to deliver profitable growth.

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group, Megaport, PointsBet, and Zip Co. The Motley Fool Australia has recommended Betmakers Technology Group, Flight Centre Travel Group, Megaport, and PointsBet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will now cut interest rates

Will borrowers need to wait until the middle of next year for relief? Let's find out.

Read more »

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »