The Short Report

Weekly Reports | May 16 2019

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.

Summary:

Week ending May 9, 2019

Last week was a very volatile one for the local market, with the ASX200 bouncing up and down on a mix of escalated trade tensions and rising hopes for an RBA rate cut.

The table below suggests not a lot of movement in short positions, with said volatility likely keeping shorters at bay. But there were a couple of themes worth noting.

To follow up on last week's focus on lithium miners, it the wake of Wesfarmers' ((WES)) takeover bid for Kidman Resources ((KDR)), we note that having dropped to 14.9% from 16.9% the week before, last week saw Galaxy Resources shorts fall to 13.8%.

Pilbara Minerals ((PLS)) shorts surprisingly rose to 10.0% from 9.5% the week before despite what appeared to be a short-covering rally in the stock, but last week fell back to 9.5%

The only other stock on the table seeing a move in shorts of one percentage point or more last week was Bellamy's Australia ((BAL)), which saw an increase to 12.5% from 11.5%. The infant formula producer is a poster child for retailers heavily exposed to Chinese earnings, which are at risk from any further escalation in US-China trade relations.

To that end we note shorts in pill and potion retailer Blackmores ((BKL)) rose to 9.0% from 8.4% and shorts in dairy product company Bega Cheese ((BGA)) rose to 7.6% from 6.9%. Both are also exporters to China.

No additional Movers & Shakers this week.

 

Weekly short positions as a percentage of market cap:

10%+

SYR    17.6
ING     16.4
JBH     15.4
NUF    15.2
NXT    15.1
GXY   13.8
BAL    12.5
ORE    12.4
MTS    11.7
BWX   11.2


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