LTM 2.40% $7.24 arcadium lithium plc

Lithium shares have been at the top of the ASX's most short-sold...

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    Lithium shares have been at the top of the ASX's most short-sold stocks lists for months now.

    Previously lofty valuations, combined with a price crash in the lithium commodity itself prompted armies of short investors to take out positions in some of the ASX's most prominent lithium stocks since the middle of last year.

    The likes of Pilbara Minerals Ltd (ASX: PLS), Core Lithium Ltd (ASX: CXO) and Sayona Mining Ltd (ASX: SYA) have frequently found themselves on the ASX's most short-sold shares list in recent months.

    But perhaps this is changing.

    Short sellers walk away from lithium stocks

    Every week, my Fool colleague James takes a look at this data and tells us what the 10 most shorted shares each week are.

    A month ago, there were three ASX lithium shares that made the cut.

    Pilbara was on top, with 20.6% of its shares held in a short position.

    Core Lithium was the third stock, with 12.7%

    And Sayona was just behind that, with 11.7% of its shares held against it.

    But this week, we have a different picture. Pilbara is still taking out the top spot. But Core Lithium has slipped to the seventh most-shorted position. And Sayona dropped out of the top ten entirely.

    So there's a clear move away from ASX lithium shares amongst short sellers.

    As today's report shows, other mining companies like Genesis Minerals Ltd (ASX: GMD) are attracting more short interest. But so too are shares like Flight Centre Travel Group Ltd (ASX: FLT) and IDP Education Ltd (ASX: IEL).

    ASIC data shows that this short interest seems to be migrating to some other diverse corners of the ASX.

    Short seller interest in blue chips like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) has increased in recent weeks, even as the interest in lithium stocks like Core Lithium and Sayona Mining has waned.

    *Sorry, this is the part I meant to post. It's from the 11th I think. Could be a clear sign the tides are turning.*

 
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