Shortsellers in Asia bet on slowdown - Data Explorers
18 October 2011 London
Image: Shutterstock
Short sellers in Asia have increased their exposure to the sectors expected to get hit by a global slowdown, says Data Explorers.
Securities lending data show that stocks within the materials, retail and real estate sectors in Asia (excluding Japan) dominate the list of companies seeing a fresh annual high in short interest.
"It is interesting to note that market sentiment in Asia has fallen from its peak at the beginning of the year. Short interest has risen to $98 billion - a level not seen since the start of 2009 - up from $80 billion at the start of January. Yet short interest stands at only one per cent of the total Asian shares," writes Data Explorers.
Meanwhile, the analytics' firms Long Short Ratio for Asian equities has fallen to 7.2, meaning that longs outnumbered shorts by just over seven times, well down on the annual average of 10.
Securities lending data show that stocks within the materials, retail and real estate sectors in Asia (excluding Japan) dominate the list of companies seeing a fresh annual high in short interest.
"It is interesting to note that market sentiment in Asia has fallen from its peak at the beginning of the year. Short interest has risen to $98 billion - a level not seen since the start of 2009 - up from $80 billion at the start of January. Yet short interest stands at only one per cent of the total Asian shares," writes Data Explorers.
Meanwhile, the analytics' firms Long Short Ratio for Asian equities has fallen to 7.2, meaning that longs outnumbered shorts by just over seven times, well down on the annual average of 10.
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