Weekly Reports | Aug 05 2021
See Guide further below (for readers with full access).
By Greg Peel
Week Ending July 29, 2021.
Last week saw the ASX200 begin a choppy, delta-uncertain run up towards this week’s new record high.
Record highs for the index are not the ambrosia of short-side traders, but not every stock within is in rally mode.
Zip Co ((Z1P)) had been heading south on increasing BNPL competition, and rival Afterpay ((APT)) likewise, when US-based Square this week made its offer for Afterpay, sending Zip shares up sharply in sympathy.
But before that announcement, Zip shorts fell only to 11.3% last week from 11.7%. Profit-taking in Webjet ((WEB)), following its delta-driven slide, took its shorts to 10.7% from 11.9%, leaving Zip at the top of the table.
There remains a cluster of stocks in the 10%-plus shorted range – Zip, Webjet, Webjet peer Flight Centre ((FLT)), and surprisingly, covid-winner Kogan ((KGN)), which is yet to sort out excess inventory and cost issues.
Then it’s daylight, and not much thereafter. To only have two stocks in the 5% bracket, and none entering last week, is very unusual.
But as I said, that’s what record index highs can do.
Weekly short positions as a percentage of market cap: