The 10 most shorted ASX stocks plus the biggest risers and fallers – Week 31
Short interest surged for Iluka Resources and JB Hi-Fi last week, while bearish positions were covered in James Hardie and Vulcan Energy.
Source: iStock
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 14 and 21 July
Month-on-month changes between 23 June and 21 July
Most covered and rising short tables record week-on-week changes of 0.5% or more
Most Shorted
Ticker | Company | Short % | Week-on-Week | Month-on-Month |
|---|---|---|---|---|
Paladin Energy | 16.41% | -0.48% | 0.36% | |
Pilbara Minerals | 14.45% | 0.63% | 0.94% | |
Boss Energy | 14.08% | -0.24% | -3.56% | |
Mineral Resources | 13.52% | -0.40% | -1.78% | |
Idp Education | 12.25% | 0.18% | 2.02% | |
Lifestyle Communities | 11.90% | 0.33% | 1.32% | |
Liontown Resources | 11.67% | -0.47% | -0.85% | |
SILEX Systems | 11.23% | -0.07% | 1.30% | |
Polynovo | 10.75% | -0.32% | 0.20% | |
Corporate Travel Management | 10.14% | 0.23% | 0.67% |
Rising Shorts
Key takeaways
Iluka's short interest has surged to record levels of 6.0% following a 22.8% rally on July 11th, when the US Department of Defence invested $400 million in MP Materials and guaranteed a minimum NdPr price of US$110/kg for ten years. This catalyst sent the rare earth sector soaring, but the subsequent spike in short interest suggests investors are betting against either the rare earth momentum or anticipating continued weakness in mineral sands. While Iluka's June quarter production beat most expectations with strong volumes across zircon, rutile, and synthetic rutile, revenue and sales delivered mixed results. Some analysts noted weaker-than-forecast outcomes due to a higher proportion of lower-value ZIC sales. Market sentiment remains cautious as several analysts flagged soft near-term demand in mineral sands, with zircon pricing under pressure and peers cutting benchmark prices. Iluka's decision to withhold zircon sales and pricing guidance for Q3 has reinforced this caution, while inventory build from slower sales has emerged as another broker concern.
JB Hi-Fi's short interest has jumped to its highest level since March 2024. The increase appears logical from a valuation perspective, with the retailer now trading at a PE of 25x versus its historical average of around 16x. The market is expecting JB Hi-Fi to deliver earnings growth of around 7.4% at its upcoming FY25 result.
Most Covered
Ticker | Company | Short % | Week-on-Week |
|---|---|---|---|
James Hardie Industries | 2.92% | -1.71% | |
Vulcan Energy Resources | 4.05% | -1.66% | |
Novonix | 4.77% | -1.20% | |
Appen | 3.48% | -0.83% | |
Life360 Inc | 0.22% | -0.83% | |
Spartan Resources | 1.25% | -0.76% | |
Ausgold | 0.49% | -0.70% | |
Mesoblast | 5.68% | -0.66% | |
Zip Co | 4.23% | -0.58% | |
Amcor | 1.03% | -0.56% | |
Electro Optic Systems Holdings | 0.06% | -0.55% |
Key takeaways
James Hardie continues to see short interest decline sharply after successfully completing its acquisition of Azek on July 1st.
The market appears to be covering positions in several higher-risk names including Vulcan Energy, Novonix, Appen and Mesoblast.
