Which ASX stocks are being shorted the most this week?

Welcome back to the Short Seller Series – Where we recap the most shorted stocks on the ASX as well as those experiencing a notable rise and fall in 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 data below refers to short interest changes for stocks between 18-25 May.

Most shorted stocks

What’s changed?

• Appen fell to sixth place from 9.6% short interest a fortnight ago.

• Short interest in Zip has continued to fall from 9.1% a fortnight ago.

• Temple & Webster joined the top 10 most shorted, climbing 0.3% in short interest on the previous fortnight.

• Pointsbet dropped below the top 10.

Where are shorters going?

• Core Lithium has seen share prices surge off the back of securing further spudumene sales agreements with Sichuan Yahua. It also announced approval for early works on its BP33 Underground Project in the Northern Territory. Core Lithium is amongst one of the most expensive miners, has it been overvalued?

• 29Metals continues to suffer from production concerns post its strategic update on the recovery of its Capricorn Copper Project and the outlook for Golden Grove last week. It traded at 67.5c on Wednesday, compared to highs of $2.64 back in December 2022.

• Premier Investments has had relatively strong growth but is facing into a challenging consumer environment. The Westpac-Melbourne Institute Consumer Sentiment index in Australia plummeted by a significant 7.9% in May 2023, surpassing market expectations and spelling concerns about the outlook for spend in the next 12 months.

• Argosy Minerals was recently tipped to outperform by Macquarie analysts and ramped up production of its Argentinium lithium project. Lithium prices have of course seen significant cooling off this year making this a favoured theme for shorters to consider.

Where are shorts covering?

• Appen prices soared in the start of the week post its annual general meeting last Friday which included the appointment of CFO Helen Johnson. It was also supported by a positive broker note from Wilsons and a surge in AI stocks in the US.

• ZIP continues to be heavily shorted but there was some drop off as a result to the government’s decision to regulate BNPL companies in a similar way to other credit products. This announcement was well received by ZIP and other companies.

• Betting regulation is on the cards for the Australian government this year, with Pointsbet and Betmakers Technology also facing the roll out of recommended changes in the UK as well. After selling its US business, there is speculation over Pointsbet’s plans for the Australian business, particularly as it has been shedding cash in the past year. Betmakers announced on Wednesday plans for $20million in cuts, including axing 100 jobs.