New analysis from GraniteShares reveals consumer discretionary was the most shorted sector in Europe as of May 1, 2024.
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Will Rhind, Founder and CEO at GraniteShares
Nearly a quarter (24) of the 100 most shorted stocks listed on major European exchanges were in the consumer discretionary sector, which comprises non-essential goods and services. Within the consumer discretionary sector, Scandic Hotels Group, a hotel chain operating in the Nordic countries, was the most shorted. Short interest in the company was up to 14.4% from 3.1% a year ago.
The analysis takes into account net relevant short positions. In fact, in the European Union short-sellers must notify the market when a net short position reaches 0.5% of the issued share capital of the company concerned and again at each 0.1% increment after that.
Industrials held the second greatest short exposure in Europe, with 18 net short positions. Irish paper-based packaging company, Smurfit Kappa, saw the highest level of short interest in the industrials sector at 14.85%, rising from 2.54% a year ago.
The energy sector had the third highest representation in the 100 most shorted stocks, as European short sellers targeted eight alternative energy stocks, as well as eight oil, gas and coal companies.
This was followed by the technology sector, which accounted for 14 shorts including Atos, the most shorted company in Europe. Ten investment firms held 16.76% of the French stock short, which is 12.79% higher than a year ago.
The table below shows a sector breakdown of the 100 most shorted stocks across 13 of the main European bourses.
| Sector | Number of the 100 most shorted stocks across Europe within this sector |
| Consumer Discretionary | 24 |
| Industrials | 18 |
| Energy | 16 |
| Technology | 14 |
| Health Care | 9 |
| Financial | 7 |
| Telecommunications | 3 |
| Consumer Staples | 3 |
| Basic Materials | 3 |
| Real Estate | 3 |
| Grand Total | 100 |
Source: WhaleWisdom, updated on May 1, 2024
GraniteShares’ analysis also reveals 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.
The table below shows a country breakdown of the 100 most shorted stocks across 13 of the main European bourses.
| Country | Number of the 100 most shorted stocks across Europe listed on this country’s stock exchange |
| UK | 22 |
| Germany | 21 |
| Sweden | 17 |
| France | 13 |
| Netherlands | 6 |
| Norway | 6 |
| Spain | 4 |
| Denmark | 4 |
| Finland | 3 |
| Italy | 1 |
| Belgium | 1 |
| Austria | 1 |
| Ireland | 1 |
| Grand Total | 100 |
Source: WhaleWisdom, updated on May 1, 2024
The table below shows the top ten most shorted European stocks.
| Top 10 most shorted stocks in Europe | Percentage of stock held short | Sector | Country |
| Atos SE | 16.76 | Technology | France |
| SMURFIT KAPPA | 14.85 | Industrials | Ireland |
| Scandic Hotels Group AB | 14.40 | Consumer Discretionary | Sweden |
| TGS Nopec Geophysical Co. Ordinary ADR | 10.50 | Energy | Norway |
| Petrofac Ltd. Ordinary | 10.09 | Energy | UK |
| Clariane SE (formerly Korian) | 9.20 | Health Care | France |
| Intrum AB | 8.61 | Financials | Sweden |
| K+S Aktiengesellschaft | 8.57 | Basic Materials | Germany |
| Alfen NV | 8.27 | Industrials | Netherlands |
| HelloFresh Deutschland Management GmbH | 8.17 | Consumer Staples | Germany |
Will Rhind, Founder and CEO of GraniteShares, said: “European listed companies are facing numerous challenges associated with the current geopolitical and macroeconomic environment. This creates more interest for shorting, both for tactical investing and for portfolio’s hedging.
Whilst bearish sentiment ran highest among investors in consumer discretionary stocks, our research found that institutional investors are betting against a wide range of sectors.
As sophisticated investors seek to benefit from trading strategies used by institutional investors, we are seeing growing demand for our ETPs, which can enable them to short stocks in an easy and efficient way, with the aim to capitalize and create opportunities also in falling markets.”
GraniteShares offers a range of exchange traded products (ETPs) listed on national exchanges in the UK, France, Italy, and Germany. They consist of a suite of index ETPs tracking FAANG stocks, and a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK, US and European markets.
Source: ETFWorld.co.uk
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