The Short Report

Weekly Reports | Jun 27 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 June 20, 2019

I’m pleased to announce ASIC data appears to have returned to normal after the nonsense of the prior two weeks. We can go back to analysing short position changes on their merit.

Last week saw the ASX200 kick on to new post-GFC highs, helped along by strength on Wall Street and as good as a promise from the RBA another rate cut is in the offing.

It’s a more familiar looking table this week, showing a more typical smattering of reds and greens. There were nevertheless four stocks experiencing short positions changes in excess of one percentage point.

Agri-stocks Nufarm ((NUF)) and Elders ((ELD)) saw short positon increases to 17.5% from 16.2% and 6.7% from 5.3% respectively. I suggest the simple explanation for this is if you’re anywhere west of the Divide, look out the window. What don’t you see?

Super Retail ((SUL)) shorts fell to 8.2% from 9.6%. There was no new news from the company but the stock has had a revival of late on improving sentiment in the housing market (the wealth effect of which flows through to vehicle purchases) thanks to the election/APRA/RBA, so perhaps some covering was evident.

The big mover in the week was Centuria Industrial REIT ((CIP)), which leapt up to 15.6% from oblivion below 5% the week before. See below.

Weekly short positions as a percentage of market cap:

10%+
SYR    19.7
NUF    17.5
ING     16.9
CIP      15.6
JBH     15.4
NXT    14.3
BAL    14.0
ORE    13.9
GXY   13.8
BWX   12.8
BIN     11.8
PLS     10.7
DMP   10.6


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