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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) remains the most shorted share on the ASX after its short interest rose to 15.3%. Short sellers will have been pleased to see this travel agent's shares hit a 52-week low today.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 14%. Once again, short sellers are winning with this one. This betting technology company's shares dropped to a 52-week low today. Valuation concerns appear to be weighing on them during the market volatility.
- Block Inc (ASX: SQ2) has seen its short interest ease slightly to 10.3%. Weakness in the tech sector, concerns over the prospects of a global recession, and regulatory pressure in the BNPL industry have been putting pressure on its shares.
- Lake Resources N.L. (ASX: LKE) has short interest of 9.9%, which is flat week on week. This lithium share has fallen heavily this month due to market volatility and an ownership dispute with its partner Lilac Solutions.
- Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.4%. This could be due to valuation concerns and significant weakness in the tech sector.
- Inghams Group Ltd (ASX: ING) is back in the top ten after its short interest rebounded to 8%. Concerns over higher input costs have been weighing on sentiment.
- Nanosonics Ltd (ASX: NAN) has short interest of 7.9%, which is down slightly week on week again. Short sellers appear to have been targeting this infection prevention company due to a disruptive business model change in the key US market.
- Breville Group Ltd (ASX: BRG) is a new entry in the top ten with short interest of 7.7%. One of Breville's rivals recently warned that the uncertain economic backdrop could impact spending trends. It also highlighted ongoing supply chain pressures.
- Zip Co Ltd (ASX: ZIP) has seen its short interest reduce materially to 7.6%. This could be because this BNPL provider was kicked out of the ASX 200 index. Some fund managers can only invest in/short shares in the benchmark index.
- De Grey Mining Limited (ASX: DEG) has short interest of 7.5%, which is down week on week. Short sellers have been closing positions after this gold developer released a positive update on its Mallina Gold Project.
