The 10 most shorted ASX stocks plus the biggest risers and fallers – Week 33

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 6 and 14 August 2024

• Month-on-month changes between 9 July and 14 August 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.

• Short interest among lithium names like Liontown and Sayona continue to tick higher. Chinese lithium carbonate futures have dropped around 14% in the past month and down around 30% year-to-date to 75,000 yuan a tonne.

• Paladin has entered into the Top 10 Most Shorted list amid its plan to acquire Canada's Fission Uranium in an all-stock deal. Fission's advisors recommend its shareholders to vote for the arrangement, with the view that the takeover premium, strategic rationale and growth potential make the transaction the best alternative for shareholders.

Rising Shorts

Lots of short interest movement amid reporting season. Some of the key trends include:

• Adriatic Metals has seen a rise in short interest after the resignation of CEO and Managing Director Paul Cronin from the board. Cronin had served in this role for the past five years and successfully guided the company through the permitting, construction, and commencement of production stages.

• Gold producers: Gold prices have reached all-time highs, but some selective gold producers, notably Bellevue Gold, have come under attack from short-sellers. Bellevue Gold was expected to be fully funded, but the company unexpectedly initiated a $150 million capital raise in late July, raising concerns about potential further dilution ahead of production.

• Uranium: Uranium prices have declined to US$81.2/lb, the lowest level since November 2023. The sector has come under pressure after the world's largest producer, Kazatomprom, raised its full-year production guidance to 22,500-23,500 tonnes from 21,000-22,500 tonnes.

Most Covered

Lots of short interest movement amid reporting season. Some of the key trends include:

• Flight Centre: Short-sellers are likely taking profits after Flight Centre's slightly disappointing FY24 guidance update on 24 July. The company's total transaction volumes fell short of its guidance due to airfare deflation, with average international and domestic airfares declining by 6% and 13%, respectively.

• Reporting season winners: Short interest is easing for a number of reporting season winners, including Block, Orora, and AGL Energy.