Consumer discretionary – non-essential goods and services – was the most shorted stock sector in Europe as of 1 May, according to new analysis from exchange traded product issuer GraniteShares, accounting for almost a quarter (24%) of the top 100 shorted stocks.
Scandic Hotels Group, a hotel chain operating in the Nordic countries, was the most shorted consumer discretionary stock, with short interest in the company up to 14.4% from 3.1% a year ago.
Industrials held the second greatest short exposure in Europe, with 18 net short positions, with Irish paper-based packaging company, Smurfit Kappa, seeing the highest level of short interest in the sector at 14.85%, up from 2.54% a year ago.
The energy sector accounted for the third highest number of stocks in the top 100, followed by the technology sector, which accounted for 14 shorts including Atos, the most shorted company in Europe. In total, 16.76% of the company’s stock is being held in short positions by ten separate investment firms, a 12.79% increase over the past 12 months.
GraniteShares’ analysis also revealed that the UK had the greatest short exposure of the main stock exchanges in Europe. In terms of the 100 most shorted stocks, 22 were listed in the UK, whilst 21 were in Germany. Sweden had the next largest number of shorted stocks with 17, followed by France with 13.
