BLD shorts vanish, BAP doubles: May’s clean rotation trade
May 2024
May’s ASIC data wasn’t a market-wide risk-off: average short interest held at 1.03% with a flat period average change (+0.00%). The month’s loudest move was Boral (BLD) collapsing from 4.92% to 0.17% (-4.75%), while shorts redeployed into Bapcor (BAP) 2.67% → 6.43% (+3.76%) and Cettire (CTT) 2.61% → 5.89% (+3.28%). Lithium still wears the crown (PLS 21.38%), but several crowded battery-materials shorts were trimmed (IEL -3.34%, SYR -2.60%, LTR -0.91%).
This Month's Analysis
Boral (BLD) didn’t just fall down the short list — it got wiped off it. A drop from 4.92% to 0.17% (-4.75%) in a month is what forced covering looks like when the risk profile changes and nobody wants to be the last short left standing. The capital didn’t leave the market. It moved — straight into the Aussie consumer via Bapcor (BAP) and Cettire (CTT).
Pilbara Minerals (PLS) stays the ASX’s most shorted stock at 21.38%, despite a small ease (-0.43%). That’s still a massive, liquid expression of the lithium-cycle view: shorts are camped on the sector’s bellwether. IDP Education (IEL) remains #2 at 12.78%, but the positioning backed off hard (-3.34%). When a short is that crowded, any whiff of policy clarity on student flows or a less-bad update can make covering the sensible trade. Battery materials are still everywhere in the top 10, but May was about trimming, not piling in: Syrah (SYR) fell to 10.72% (-2.60%) and Liontown (LTR) to 9.99% (-0.91%). Sayona (SYA) was the exception, rising to 9.41% (+1.32%). Away from lithium, two names muscled their way into the conversation. Westgold (WGX) climbed to 9.70% (+2.22%) and Chalice (CHN) to 9.50% (+2.64%). That’s a clear preference for stock-specific execution risk: WGX is being treated as an operational delivery story even with gold’s support, while CHN wears the classic developer discount — timelines and project economics matter more when the market wants cashflow now.
Daily Snapshots
Top Shorted Stocks This Month
Biggest Risers
Stocks with the largest increase in short interest this month.
Biggest Fallers
Stocks with the largest decrease in short interest this month.
Movers Analysis
The month’s cleanest “shorts piled in” move was Bapcor (BAP): 2.67% → 6.43% (+3.76%). That’s not a drift higher — it’s a repositioning. Auto parts can look defensive, but it still leans on household budgets, and this is what “higher for longer” does to consumer-facing earnings setups. Cettire (CTT) followed: 2.61% → 5.89% (+3.28%). When shorts chase a smaller consumer name that quickly, they’re usually aiming at expectations — the next update is the target. Healius (HLS) also lit up, rising from 5.52% to 8.34% (+2.83%). Diagnostics sells itself as defensive, but the market shorts the P&L: margins, rebates and competition. Then there’s the unwind list. BLD’s collapse (4.92% → 0.17%, -4.75%) is the kind of move you see when event risk flips the asymmetry and shorts clear out. Deep Yellow (DYL) dropped from 5.15% to 2.25% (-2.90%), Syrah (SYR) from 13.33% to 10.72% (-2.60%), and AVZ Minerals (AVZ) from 3.28% to 1.05% (-2.23%) — a mix of profit-taking and event-driven positioning coming off the boil.
Industry Trends
Two trades ran May. First: lithium is still the short seller’s home base. PLS (21.38%), LTR (9.99%) and SYA (9.41%) keep the complex heavily represented, even as some of the biggest positions were trimmed (PLS -0.43%, LTR -0.91%). The message is simple: the sector remains the market’s preferred place to lean against earnings. Second: the shorts rotated into domestic cyclicals. BAP and CTT are a straight read-through on the consumer — cost-of-living pressure plus rates staying high squeezes discretionary spend, and the market is positioning for that to show up in guidance. The broader tape stays calm: 680 stocks shorted, average short interest 1.03%, max short 21.38%, and a flat period average change (+0.00%). Targeted aggression. Not panic.
Outlook
Watch Bapcor (BAP) and Cettire (CTT) for the next trading update or guidance reset: with BAP at 6.43% and CTT at 5.89%, any miss will be met with fresh selling, and any beat will force a fast cover.
Frequently Asked Questions
Why did Boral (BLD) short interest drop from 4.92% to 0.17% in one month?
That move (-4.75%) is mass covering. It usually happens when the downside case is removed or event risk rises and shorts don’t want the exposure, so they close positions quickly.
Why is Pilbara Minerals (PLS) still the most shorted ASX stock at 21.38%?
PLS is the market’s most liquid lithium proxy, so it attracts big directional bets on the lithium price cycle. Even after easing by -0.43% in May, 21.38% short interest shows the trade is still heavily crowded.
What does Bapcor (BAP) jumping from 2.67% to 6.43% short interest mean?
It means shorts actively increased their bet against the stock (+3.76%) rather than just holding an existing position. The positioning points to a consumer/earnings setup: higher rates and cost-of-living pressure feeding into discretionary spending risk.
Why did IDP Education (IEL) short interest fall from 16.11% to 12.78%?
Shorts covered 3.34% in May. When a stock is heavily shorted, traders often take profit or reduce risk ahead of catalysts, because any positive surprise can trigger a sharp short-covering rally.
Which stocks had the biggest increases in short interest in May 2024?
Bapcor (BAP) +3.76% to 6.43%, Cettire (CTT) +3.28% to 5.89%, Healius (HLS) +2.83% to 8.34%, Chalice (CHN) +2.64% to 9.50%, and Westgold (WGX) +2.22% to 9.70%.
Data sourced from ASIC short position reports (T+4 delayed). This report is for informational purposes only and does not constitute financial advice. Short selling data may not reflect real-time market conditions.