S&P/ASX 200 Index (ASX: XJO) shares were trading 1.29% lower at the close on Thursday following Wall Street's dive overnight.
In late afternoon trading, every market sector was in the red. Leading the market fall today were ASX 200 energy shares, down 6.92%, and ASX 200 property shares, down 4.72%.
The largest faller of the day is ASX mining share Regis Resources Ltd (ASX: RRL), down 9.69% after the company released its quarterly update.
ASX 200 shares delivered healthy total returns of 12.1% (including share price growth and dividends) in FY24.
Amid another year of healthy gains, some stocks have overshot their fundamental worth, according to the professionals.
Either that or their prospects for share price growth are low because of varying factors specific to the companies.
In this article, we look at four ASX 200 shares that the traders are heavily shorting right now.
The basic definition of shorting is betting that a company's share price will fall from where it is now.
It's a short-term type of trading undertaken by professional traders.
Shorting is typically not available to amateur investors. However, monitoring shorting activity can provide useful information to help us maintain our portfolios.
Every week, the Australian Securities and Investments Commission (ASIC) publishes a short position report documenting the percentage of shares shorted in every company listed on the ASX.
My colleague James reports the top 10 most shorted shares every Monday, so you can also find the information here at The Fool.
If a short position is high or growing, that indicates the experts think the share price is likely to fall.
They don't always get it right, mind you, but it's still a good idea to monitor shorting. This is especially true if you are considering selling an ASX share that has performed very strongly in recent times.
So, let's take a look at the four ASX 200 shares with the biggest short positions today.
4 ASX 200 shares with big short positions today
Pilbara Minerals Ltd (ASX: PLS) shares have a 20.6% short interest. The company reported a solid final quarter yesterday, but spiralling lithium prices brought its average full-year realised price down by 74%.
IDP Education Ltd (ASX: IEL) has a short interest of 12.9%. Changes in student visa arrangements are impacting the language testing and student placement company. Some wealth managers are seeing an opportunity to buy the dip. Magellan Financial Group Ltd (ASX: MFG) just bought three million shares.
Flight Centre Travel Group Ltd (ASX: FLT) shares have an 11% short interest. Yesterday, the company downgraded its full-year guidance, causing the share price to plunge 6.5%. It's down another 2.8% today.
Liontown Resources Ltd (ASX: LTR) has a 10.4% short interest. Once again, weak lithium commodity values are weighing on this company. Top broker, Goldman Sachs is tipping 6% spodumene and carbonate prices to go even lower next year, which doesn't bode well for ASX 200 lithium shares.
