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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) continues to be the most shorted share on the Australian share market with short interest of 15.2%. This is down week on week. Short sellers appear concerned with competitive pressures in the betting industry.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise slightly to 14.7%. Short sellers have been adding to their positions after the recent release of a disappointing trading update.
- Block Inc (ASX: SQ2) has seen its short interest rise to 12.5%. Australian short sellers certainly are more bearish than US investors. This short interest is almost triple the short interest of Block's NYSE listed shares.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.4%, which is flat week on week. Short sellers have been targeting this pizza chain operator's shares due to its soft performance in FY 2023 because of inflationary pressures.
- Megaport Ltd (ASX: MP1) has seen its short interest ease for a second week in a row to 10.4%. Some short sellers may believe that this network as a service operator's shares are close to bottoming.
- Sayona Mining Ltd (ASX: SYA) has jumped into the top ten with short interest of 9.55%. This lithium developer may have been targeted due to valuation concerns.
- Perpetual Limited (ASX: PPT) has seen its short interest ease to 9.4%. This fund manager's shares have come under pressure this month after the courts pressured the company into completing its acquisition of Pendal Group Ltd (ASX: PDL). This appears to rule out its own takeover by private equity.
- Nanosonics Ltd (ASX: NAN) has short interest of 9.1%, which is flat week on week. Upbeat brokers notes last week in response to its trading update led to this infection prevention company's shares leaping higher, much to the dismay of short sellers.
- Breville Group Ltd (ASX: BRG) has seen its short interest slide again to 8.4%. Short sellers continue to close positions following the release of the appliance manufacturer's solid first quarter update.
- Lake Resources N.L. (ASX: LKE) has returned to the top ten with short interest of 8.3%. Short sellers have doubts over the company's ability to produce battery grade lithium from its operation.
