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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:
- Betmakers Technology Group Ltd (ASX: BET) remains the most shorted share on the Australian share market after its short interest rose to 15.9%. This betting technology company's shares are down almost 70% this year.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 14.5%. Short sellers will have been pleased to see this travel agent giant's shares tumble on Monday following a softer than expected trading update.
- Block Inc (ASX: SQ2) has seen its short interest rise to 12.4%. Short sellers continue to build their positions despite the payments company's shares rising 25% in a month.
- Megaport Ltd (ASX: MP1) has seen its short interest rise to 11.9%. Short sellers appear to be increasing their positions after a softer than expected first quarter update from the network as a service provider.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 11.7%. This pizza chain operator's shares have fallen heavily this year after inflationary pressures weighed on its performance.
- Perpetual Limited (ASX: PPT) has seen its short interest ease to 11%. Short sellers will have been disappointed to see this fund manager's shares charge higher this month after receiving a takeover offer.
- Breville Group Ltd (ASX: BRG) has seen its short interest rise to 9.1%. Unfortunately for short sellers, this appliance manufacturer's shares jumped last week after a solid first quarter update.
- Temple & Webster Group Ltd (ASX: TPW) has short interest of 9.1%, which is up strongly week on week. Valuation concerns and an ecommerce slowdown may be behind this high level of short interest.
- Nanosonics Ltd (ASX: NAN) has short interest of 8.7%, which is up week on week again. Concerns over this infection prevention company's business model change in the key US market have been weighing on sentiment.
- Sayona Mining Ltd (ASX: SYA) has seen its short interest fall to 8.6%. Short sellers may be targeting this lithium developer due to valuation and funding concerns.
