See Guide further below (for readers with full access).
Summary:
Week ending February 6, 2020
Last week saw the ASX200 take its second leg down on the coronavirus scare before bottoming out and beginning the rebound.
The arbitrage is over, it seems, Kirkland Lake Gold ((KLA)) has disappeared off the table.
I noted in last week’s Report that Nearmap’s ((NEA)) profit warning sparked a -25% sell-off in the share price but an increase in short positions to 13.7% from 12.3%. Analysts have since called the plunge misguided, and while the share price has only marginally improved in the interim, short positions last week dropped to 10.8% from 13.7%.
Bit of a rethink, it appears.
The only other stock to record a change in short position of one percentage point or more last week was Pinnacle Investment Management ((PNI)), formerly Wilson Group. The fund manager reported a strong earnings result and enjoyed a share price pop last week. Shorts rose to 8.1% from 7.1%.
Otherwise we might note that last week brought some severe volatility in the prices of battery material miners – more so than is usual – on the back of a parabolic run-up in battery and EV poster child Tesla. The likes of Galaxy Resources ((GXY)), Orocobre ((ORE)) and Syrah Resources ((SYR)) surged, only to fall back again when Tesla warned of a virus impact on its Chinese factory.
Was the surge driven by short-covering? It would appear not. Short positions in all three, and in Pilbara Resources ((PLS)) and Mineral Resources ((MIN)), are barely changed from the week before
No Movers & Shakers this week.
Weekly short positions as a percentage of market cap:
10%+
GXY 19.0
SYR 16.9
SDA 13.0
ORE 13.0
ING 12.2
GWA 11.5
CGC 11.4
JBH 11.1
NEA 10.8
BGA 10.7
WEB 10.4
NXT 10.3
MTS 10.0
In: MTS Out: KLA
9.0-9.9
DMP
Out: MTS, BKL
8.0-8.9%
CUV, SUL, RSG, PPT, NUF, NCZ, BKL, PLS, BEN, PNI, IVC
In: BKL, PPT, NUF, NCZ, BEN, PNI Out: HUB
7.0-7.9%
MIN, HVN, HUB, A2M, MYR, BOQ, CTD
In: HUB Out: NUF, PPT, NCZ, BEN, PNI, BIN
6.0-6.9%
BIN, KGN, RWC, SGM
In: BIN, SGM
5.0-5.9%
CLH, BWX, CGF, MND, CLQ, FLT, IFL, MYX, COE, RFF, AMP, NEC, GMA, DCN
In: FLT Out: SGM, JIN, MSB
Movers & Shakers
See above.
ASX20 Short Positions (%)
| CODE | LAST WEEK | WEEK BEFORE | CODE | LAST WEEK | WEEK BEFORE |
|---|---|---|---|---|---|
| AMC | 0.4 | 0.4 | NCM | 1.0 | 1.0 |
| ANZ | 0.5 | 0.5 | RIO | 4.1 | 3.8 |
| BHP | 3.4 | 3.2 | SCG | 0.3 | 0.4 |
| BXB | 0.3 | 0.3 | SUN | 0.6 | 0.6 |
| CBA | 0.7 | 0.7 | TCL | 0.4 | 0.4 |
| CSL | 0.1 | 0.1 | TLS | 0.3 | 0.3 |
| GMG | 0.2 | 0.3 | WBC | 0.5 | 0.5 |
| IAG | 0.5 | 0.5 | WES | 0.6 | 0.7 |
| MQG | 0.4 | 0.2 | WOW | 0.7 | 0.8 |
| NAB | 0.6 | 0.6 | WPL | 0.8 | 0.7 |
To see the full Short Report, please go to this link
Guide:
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.
