The Short Report

Summary:

Week ending July 23, 2020

Last week saw the ASX200 fail to put together two consecutive sessions in one direction and despite the volatility, it ended back at the beginning.

Just when we thought Myer ((MYR)) would finally be alone in the 10%-plus shorted club with Webjet ((WEB)) dipping out, along comes Kirkland Lake Gold ((KLA)), again.

Kirkland has appeared at the top of the table before, and last week reappeared at 10.9% shorted from oblivion. The Canada-based miner is listed in all of Toronto, New York and Australia, and as such these seemingly bizarre moves most likely reflect geographical share price arbitrage and nothing more, and to that end can be ignored.

Otherwise, little action at the top of the table, and really only a bit of shuffling around at the low end, as has been the trend in recent weeks. Outside of Kirkland, only one stock saw a short position change of one percentage point or more.

Biotech Mesoblast ((MSB)) has a drug that may be effective in treating children with covid on top of other pre-existing conditions. Any vaccine/treatment hopeful globally has seen volatile times in share markets of late. Mesoblast shorts fell to 5.1% from 6.1% last week.

For the record, aerial photomapping company Nearmap ((NEA)) enjoyed a 14% one-day share price spike last week on no new news (following a big run up for the Nasdaq), but scared away only a handful of shorters in falling to 7.8% from 8.4%.

Lynas Corp ((LYC)) received a payment from the US government this week to progress a rare earth processing facility, but last week dropped out of the 5% table from 5.2%.

No Movers & Shakers this week.

Weekly short positions as a percentage of market cap:

10%+
MYR   12.0
KLA    10.9

In: KLA          Out: WEB

9.0-9.9

ING, WEB

In: WEB

8.0-8.9%

ORE, CUV

In: ORE          Out: NEA

7.0-7.9%

NEA, BOQ, Z1P, GXY

Out: ORE, FXL

6.0-6.9%

FLT, FNP, MTS, JBH, FXL, PPT, SGM, PGH, IVC, CTD, ALG

In: FXL, FLT, IVC, CTD, ALG                    Out: SUL, MSB

5.0-5.9%

SUL, CLH, PLS, BIN, IFL, SEK, SXL, MSB, BUB, PNV

In: SUL, MSB, PNV              Out: FLT, ALG, IVC, CTD, LYC, AMA

Movers & Shakers

See above.

ASX20 Short Positions (%)

CODE LAST WEEK WEEK BEFORE CODE LAST WEEK WEEK BEFORE
ALL 4.1 4.2 NCM 0.3 0.6
ANZ 0.7 0.7 RIO 2.2 2.1
BHP 4.1 4.1 SCG 0.7 0.8
BXB 0.2 0.3 SUN 0.4 0.6
CBA 0.5 0.5 TCL 0.6 0.6
CSL 0.1 0.3 TLS 0.2 0.5
GMG 0.4 0.4 WBC 0.7 0.9
IAG 0.7 0.7 WES 0.4 0.4
MQG 0.3 0.3 WOW 0.2 0.2
NAB 0.7 0.8 WPL 1.2 1.3

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Greg Peel

About Greg Peel

Greg Peel joined Macquarie Bank in 1986 and acquired trading experience in equities, currency, fixed income and commodities derivatives, ultimately being appointed director of equity derivatives trading. He later published In With The Smart Money (a plain English guide to the mysterious world of financial markets and derivatives) and acted as a consultant to boutique investment funds. In 2004 Greg joined FNArena as a contributing writer. He is now a director and principal of the company. Greg compliments the journalistic background of the FNArena team with lengthy experience as a financial markets proprietary trader.

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