The Short Report

By Rudi Filapek | More Articles by Rudi Filapek

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.

Summary:

Week ending June 13, 2019

As it transpires, I was correct to be sceptical about the data provided by ASIC which informed last week’s Short Report. Last week’s sea of green is suddenly a sea of red.

Last week only one stock moved up a bracket, implying a short position increase, while all other moves were downward, implying short-covering. This week only one stock went down (Metcash) while the rest went up.

Might as well be looking in a mirror. Even Amcor – the only stock I could offer a possible explanation for, is back in the table.

For the record, last week saw the ASX200 enjoy a sharp rally in line with Wall Street, as Trump’s tariffs on Mexico were called off. The index then tracked sideways ahead of this week’s rallies. We might assume such a sharp rally would lead to some frantic short-covering, except that the table below suggest the opposite.

Ignore the reds and greens on the table below, and likewise the table from last week. We now have to recalibrate and hope such data anomalies do not persist next week. Only then will we be able to assess what is really happening among short positions.

Weekly short positions as a percentage of market cap:

10%+

SYR    19.4
ING     17.0
NUF    16.2
JBH     15.5
NXT    14.5
GXY   14.1
ORE    13.8
BAL    13.2
BWX   12.5
BIN     11.5
IFL      10.3
DMP   10.2

In: IFL, BWX, BIN, DMP     Out: MTS

9.0-9.9

PLS, SDA, MTS, RWC, SUL, HVN, BGA, PPT

In: SDA, RWC, PLS, PPT, BGA, MTS                     Out: BWX, BIN, DMP

8.0-8.9%

BKL, SGM, CSR, KGN, IVC, HUB, MYR

In: BKL, SGM, IVC, HUB                Out: IFL, PPT

7.0-7.9%

WSA, CGC, CGF, BOQ, AMP

In: WSA, CGC                       Out: SDA, BGA, PLS, IVC, HUB, BKL

6.0-6.9%

NEC, GWA, GMA

In: NEC, GWA                       Out: RWC, SGM, CGC

5.0-5.9%

MSB, SEK, COE, MIN, RSG, A2M, SXY, OML, CTD, CLH, LNG, ELD, AMC, CLQ, MLX

In: RSG, A2M, OML, LNG, ELD, AMC, MLX                  Out: NEC

Movers & Shakers

Not today.

ASX20 Short Positions (%)

Code Last Week Week Before Code Last Week Week Before
AMC 5.2 2.8 RIO 4.7 4.8
ANZ 0.7 0.7 S32 0.8 0.8
BHP 3.0 3.1 SCP 0.9 0.6
BXB 0.1 0.2 SUN 0.5 0.5
CBA 1.3 1.3 TCL 0.9 1.1
COL 1.5 1.3 TLS 0.6 0.5
CSL 0.3 0.3 WBC 1.5 1.7
IAG 0.5 0.3 WES 1.7 1.8
MQG 0.7 0.5 WOW 1.7 1.6
NAB 1.3 1.0 WPL 0.7 0.6
Rudi Filapek

About Rudi Filapek

Rudi Filapek-Vandyck is approaching three decades as an active journalist. During the nineties, Rudi successfully built a financial news wire in Europe. After arriving in Australia in 2000, he worked on several projects before founding FNArena.

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