ASX Short Selling Trends: Where Shorts Are Concentrated in January 2026
A deep dive into short selling patterns across ASX sectors and industries. We analyse $46.5B in short positions across 660 stocks to reveal where bears are betting biggest.
Short selling on the ASX tells a story about where institutional investors see risk, overvaluation, or structural challenges. Our latest data analysis across 660 stocks reveals fascinating patterns about where shorts are concentrating their bets - and where they're conspicuously absent.
The Big Picture: $46.5 Billion in Short Positions
As of January 5, 2026, there are approximately 6.25 billion shares sold short across the ASX, representing a total short value of $46.5 billion AUD. The average short interest across all stocks is 1.28%, with individual positions ranging from near-zero to nearly 20%.
Market-Wide Short Statistics
| Metric | Value |
|---|---|
| Total Stocks Tracked | 660 |
| Total Short Shares | 6.25B |
| Total Short Value | $46.5B AUD |
| Average Short Interest | 1.28% |
| Maximum Short Interest | 19.69% |
| Most Shorted Stock | BOE (Boss Energy) |
Sector Analysis: Where Are Shorts Concentrated?
Short sellers aren't betting uniformly across the market. Some sectors attract significantly more short interest than others, revealing where institutional bearishness is concentrated.
Top 5 Most Shorted Sectors (by Average Short Interest)
| Rank | Sector | Avg Short % | Max Short % | Stocks |
|---|---|---|---|---|
| 1 | Consumer Discretionary | 4.00% | 17.69% | 28 |
| 2 | Energy | 2.31% | 19.69% | 38 |
| 3 | Consumer Staples | 2.26% | 10.04% | 12 |
| 4 | Technology | 2.21% | 5.06% | 3 |
| 5 | Health Care | 1.84% | 11.59% | 57 |
Sector Deep Dives
Consumer Discretionary: The Most Targeted Sector
With an average short interest of 4.00% across 28 stocks, Consumer Discretionary is the most shorted sector on the ASX. The maximum short position in this sector reaches 17.69% (Domino's Pizza - DMP).
Why shorts are targeting this sector:
- Rising interest rates impact discretionary spending
- Cost-of-living pressures squeezing consumer budgets
- Weakening retail sales trends
- High valuations in some consumer stocks
Notable short targets: Domino's Pizza (DMP) at 17.69% is the second-most shorted stock on the entire ASX, reflecting skepticism about its growth trajectory and franchise model challenges.
Energy: The Uranium Short War
The Energy sector shows 2.31% average short interest but contains the single most shorted stock on the ASX: Boss Energy (BOE) at 19.69%. This sector tells a story of a fierce battle between uranium bulls and bears.
The uranium paradox: Despite bullish long-term narratives around nuclear power and energy security, short sellers are aggressively targeting uranium stocks. This suggests:
- Skepticism about near-term uranium price movements
- Concerns about project execution and timeline risks
- Valuation concerns after significant run-ups
Total short position in Energy: 823.3 million shares
Health Care: The Biotech Battleground
With 57 stocks and an average of 1.84% short interest, Healthcare presents a diverse picture. The maximum short in this sector is 11.59% (PolyNovo - PNV).
Healthcare short themes:
- Clinical trial risk in biotech companies
- Valuation concerns in high-multiple healthcare stocks
- Regulatory approval uncertainty
- Competition from global pharma
Industry Deep Dive: The Most Shorted Industries
Looking at more granular industry data reveals where specific short themes are playing out:
Top 10 Most Shorted Industries
| Rank | Industry | Avg Short % | Stock Count |
|---|---|---|---|
| 1 | Class Pend | 9.29% | 1 |
| 2 | Automobiles & Components | 5.82% | 3 |
| 3 | Electronic Components | 5.06% | 1 |
| 4 | Diagnostics & Research | 3.97% | 1 |
| 5 | Consumer Durables & Apparel | 3.88% | 2 |
| 6 | Consumer Services | 3.78% | 23 |
| 7 | Independent Power Producers | 3.20% | 1 |
| 8 | Food, Beverage & Tobacco | 3.00% | 9 |
| 9 | Packaged Foods | 2.81% | 1 |
| 10 | Energy | 2.60% | 33 |
Key Industry Insights
Consumer Services: The Largest Shorted Industry Cohort
With 23 stocks and an average short interest of 3.78%, Consumer Services is the largest single industry where shorts are concentrated. This includes:
- Travel and leisure companies
- Hospitality businesses
- Consumer-facing service providers
The maximum short in this industry is a staggering 17.69%, indicating some very aggressive bearish bets.
Automobiles & Components: EV Skepticism
Three auto-related stocks carry an average 5.82% short interest, with a maximum of 11.94%. This likely reflects:
- Electric vehicle transition challenges
- Supply chain concerns
- Competition from global manufacturers
Food, Beverage & Tobacco: Cost Pressure Plays
Nine stocks averaging 3.00% short interest with a max of 10.04% suggests shorts are betting on:
- Margin compression from input cost inflation
- Changing consumer preferences
- Competitive pricing pressures
The Week's Biggest Movers: Short Interest Changes
Short positions don't stay static. Here are the notable changes from the past week:
Biggest Short Interest Increases
| Stock | Company | Change | New Short % |
|---|---|---|---|
| CUV | Clinuvel Pharmaceuticals | +2.92% | 9.50% |
| DRO | DroneShield | +0.61% | 11.11% |
Clinuvel (CUV) saw the most dramatic increase, with short interest jumping from 6.58% to 9.50% - a 44% increase in short positions. This healthcare company is now among the top 15 most shorted stocks on the ASX.
DroneShield (DRO) also saw shorts adding to positions despite the company's strong contract announcements, suggesting some disagreement about valuation at current levels.
Notable Short Interest Decreases
| Stock | Company | Change | New Short % |
|---|---|---|---|
| BOE | Boss Energy | -0.86% | 19.69% |
Even Boss Energy saw some short covering, with positions dropping 0.86% - though at 19.69%, it remains the most shorted stock on the ASX by a significant margin.
The Least Shorted Corners of the Market
Not every sector attracts short sellers. Some areas of the market have remarkably low short interest:
Sectors Shorts Are Avoiding
| Sector | Avg Short % | Why Shorts May Be Avoiding |
|---|---|---|
| Financial Services | 0.14% | Bank fundamentals remain solid |
| Basic Materials | 0.50% | Commodity price support |
| Consumer Cyclical | 0.70% | Selective targeting only |
| Communication Services | 0.75% | Stable cash flows, dividends |
| Utilities | 0.76% | Defensive, regulated earnings |
Industries with Minimal Short Interest
- Gold Mining: Only 0.09% average short interest - shorts appear unwilling to bet against gold in the current macro environment
- Medical Devices: 0.07% short interest - perhaps too specialized for short sellers
- Banks: 1.24% average - financial sector stability reducing bearish bets
Materials: The Volume King
The Materials sector deserves special mention for the sheer volume of shares shorted: 1.82 billion shares across 200 stocks. Despite the high absolute number, the average short interest is only 0.79%, suggesting:
- Large market caps dilute percentage metrics
- Mining sector is too diverse for thematic shorts
- Commodity exposure makes directional bets risky
What This Tells Us About Market Sentiment
1. Consumer Skepticism is High
The concentration of shorts in Consumer Discretionary and Consumer Services suggests widespread institutional skepticism about the Australian consumer. Mortgage stress, cost-of-living pressures, and potential economic slowdown are reflected in these short positions.
2. Energy is a Battleground
The presence of both the highest individual short (BOE at 19.69%) and strong long positions in uranium stocks suggests this sector is highly contested. The resolution of this tug-of-war will likely create significant price movements in either direction.
3. Healthcare Remains Polarized
With both heavy short interest in some names (PNV at 11.59%) and minimal interest in others, shorts are being very selective about which healthcare bets to make.
4. Financials and Utilities Are Safe Havens
Low short interest in Banks and Utilities suggests shorts see limited downside in these traditionally defensive sectors.
Implications for Investors
For Bulls
- High short interest creates squeeze potential when sentiment shifts
- Heavily shorted stocks with improving fundamentals offer asymmetric opportunities
- Watch for short covering as a catalyst for moves higher
For Bears
- Consumer-facing sectors offer the broadest short opportunity set
- Energy stocks provide high-conviction short opportunities (or risks if wrong)
- Avoid shorting low-interest sectors where crowded longs may persist
For Everyone
- Short interest data is a valuable sentiment indicator
- Extreme positions (both high and low) often precede significant moves
- Monitor weekly changes for early signals of shifting sentiment
Methodology
This analysis uses official ASIC short position data as of January 5, 2026. Short percentages are calculated as short position shares divided by total shares on issue. Sector and industry classifications follow GICS standards. All data is sourced from ASXShort.app's proprietary database of 660+ ASX-listed securities.
Disclaimer: This blog post is for informational and educational purposes only and is not financial advice. Short selling data reflects positions as of the report date and changes daily. High short interest does not guarantee price declines, just as low short interest does not guarantee price increases. Short squeezes and covering rallies can cause significant volatility. Always conduct your own research and consult with a qualified financial professional before making investment decisions.