The Short Report draws upon data provided by the Australian Securities & Investment Commission (ASIC) to highlight significant weekly moves in short positions registered on stocks listed on the Australian Securities Exchange (ASX). Short positions in exchange-traded funds (ETF) and non-ordinary shares are not included. Short positions below 5% are not included in the table below but may be noted in the accompanying text if deemed significant.
Please take note of the Important Information provided at the end of this report. Percentage amounts in this report refer to percentage of ordinary shares on issue.
Stock codes highlighted in green have seen their short positions reduce in the week by an amount sufficient to move them into a lower percentage bracket. Stocks highlighted in red have seen their short positions increase in the week by an amount sufficient to move them into a higher percentage bracket. Moves in excess of one percentage point or more are discussed in the Movers & Shakers report below.
Week ending February 14, 2019
After a solid rally, last week saw the ASX200 track sideways in the 6000-6100 range, which it has done so ever since. There has been a lack of macro news of late – the world awaits an outcome on trade – and the local results season has largely netted itself out so far.
But boy have there been some big moves in share price, in either direction.
Last week the season was only just hotting up, with the bulk of reports coming in this week. Next week’s Report may thus be interesting, but for now we can note some result-related moves.
There were three short position changes of more than one percentage point last week.
Domain Group ((DHG)) shorts rose to 6.7% last week from 5.5% the week before. Oh dear. Domain’s share price took off on this week’s result, with short-covering likely a factor.
And for interest sake we note shorts in Bingo Industries ((BIN)) were little change last week at 5.0%. That stock fell -49% this week on a profit warning, before somewhat recovering in the following sessions.
Weekly short positions as a percentage of market cap:
SDA, HVN, PLS
NUF, MSB, SGM, BEN, AMC, RWC
In: NUF, SGM, BEN, AMC Out: NAN
NAN, BOQ, AMP, DHG, BKL, MND, GMA, RSG, CCP, A2M
In: NAN, DHG Out: AMC, SGM, BEN, SEK, HT1
CGF, WSA, LYC, HT1, AHG, BGA, SEK, A2B, HUB, APT, CLH, PTM, KAR, BIN, CAR, KDR
In: HT1, SEK, CAR Out: DHG, NWS, MLX, ARB
Movers & Shakers
When FNArena first introduced the Short Report, previously in a different format, consumer goods retailer JB Hi-Fi perennially sat towards or at the top of the most shorted list. Result season after result season JB Hi-Fi would beat expectations, but still the shorters persisted.
Eventually, battered and bruised, the shorters retreated, and JB Hi-Fi fell off the 5%-plus table for a period. But the company has since acquired a difficult Good Guys business, and a foreign company by the name of Amazon has appeared on the scene. Suffice to say it didn’t take long before JB Hi-Fi was back in its old familiar position, right up the top of the table.
In last week’s report I noted JB Hi-Fi shorts fell to 14.6% from 15.6% ahead of Monday’s earnings release, which scored a “not bad” and resulted in only a modest share price increase. Last week shorts fell to 12.7% from 14.6%.
In the words of Pete Seeger, when will they ever learn?
When the Hayne Royal Commission was in full swing the smaller regional banks managed to stay out of the spotlight as the Big Four were publically flayed. But they were very much in the spotlight last week when Bendigo & Adelaide Bank delivered a shocker of a result. Rather than take profits, shorters upped the ante increasing the position to 7.3% from 6.1%.
Also at 6.1% the week before was peer Bank of Queensland ((BOQ)). Its shorts ticked up to 6.8% in sympathy with Bendalaide but it was this week BOQ issued a profit warning even more substantial than its peer, resulting in an even more severe market response.
We’ll see how it fared in next week’s Report.
ASX20 Short Positions (%)
|Code||Last Week||Week Before||Code||Last Week||Week Before|
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