The 10 most shorted ASX stocks plus the biggest risers and fallers – Week 31

Welcome back to the Short Seller Series – A recap of the most heavily shorted stocks on the ASX and those experiencing significant changes to short interest over the past week.

Short selling data is four days behind today's date because reporting is not mandatory until three business days after the trade. The tables below will compare:

• Week-on-week changes between 23 and 31 July 2024

• Month-on-month changes between 25 June and 31 July 2024

Most Shorted

Interesting takeaways:

• Pilbara Minerals and IDP Education remain the two most shorted stocks on the market. The two stocks have retained the top spots since early February

• Westgold's short interest has spiked to record levels. The company successfully merged with Karora in early August, with a condition to dual-list on both the ASX and Toronto Stock Exchange. This dual-listing requirement may have sparked the bearish thesis, as shareholders often flock to one exchange while the stock struggles on the other. However, Westgold shares are trading near all-time highs, and analysts remain optimistic about the merger. Macquarie analysts noted, "The KRR deal, in our view, will see WGX become a ~500kozpa producer aided by growth at Beta Hunt, Big Bell, Bluebird and new production from Great Fingall." At this production level, Westgold would become Australia's third-largest gold producer.

Rising Shorts

Interesting takeaways:

• Uranium stocks, including Paladin Energy, Peninsula Energy, and Deep Yellow, have experienced a noticeable uptick in short interest. This follows an announcement on August 3 by Kazatomprom, the world's largest uranium producer, raising its full-year production guidance from 21,000-22,500 tonnes to 22,500-23,500 tonnes. The news triggered a sharp decline in uranium stocks, suggesting a well-timed move by short sellers.

• Sandfire Resources, one of the ASX's few remaining pure-play copper miners, faces increased short interest amid a sharp decline in copper prices. The metal's value fell for eight consecutive sessions, dropping 10.6% between July 12 and 24.

Most Covered

Interesting takeaways:

• Shorters are taking profits across a number of beaten up stocks

  • Brainchip shares have fallen 12% in the past month, following a $25 million capital raise at 19 cents per share, a 3.5% discount to its last closing price.

  • Arafura shares have dipped around 20% in the past month amid weak rare earth prices. The company raised $20 million at 19 cents per share, a 15.8% discount to its last closing price.