IHS Markit analyses the UK鈥檚 most shorted prepare to reveal earnings
31 August 2017 London
Image: Shutterstock
Oil and gas service provider Petrofac is this week鈥檚 most shorted UK firm in the wake of accusations of bribery by the UK鈥檚 Serious Fraud Office, according to IHS Markit.
Currently, Petrofac has 10.6 percent of shares out on loan as short sellers looked to capitalise on the heavy losses that the revelations instigated.
IHS Markit analyst Simon Colvin said in a research note: 鈥淧etrofac short sellers were eager to take profit off the table immediately, and the demand to borrow its shares nearly halved in a few weeks.鈥�
鈥淭his restraint proved to be temporary, and Petrofac鈥檚 short interest increased to the highest level in 18 months.鈥�
The only European firm with more short interest this week was German midcap Bertrandt Group, which helps automobile and aviation firms with design solutions.
IHS Markit noted that sell side analysts recently revised their guidance on Bertrandt, citing a lack of demand from its top customers, and shares fell heavily as a result.
The latest data shows Bertrandt trading at a five-year low and indicates that short sellers haven鈥檛 given up the chase yet, with driving short interest to an all-time high.
Colvin added: 鈥淪hort sellers, who have been targeting Bertrandt for much of the year, should feel vindicated for their tenacity.鈥�
Currently, Petrofac has 10.6 percent of shares out on loan as short sellers looked to capitalise on the heavy losses that the revelations instigated.
IHS Markit analyst Simon Colvin said in a research note: 鈥淧etrofac short sellers were eager to take profit off the table immediately, and the demand to borrow its shares nearly halved in a few weeks.鈥�
鈥淭his restraint proved to be temporary, and Petrofac鈥檚 short interest increased to the highest level in 18 months.鈥�
The only European firm with more short interest this week was German midcap Bertrandt Group, which helps automobile and aviation firms with design solutions.
IHS Markit noted that sell side analysts recently revised their guidance on Bertrandt, citing a lack of demand from its top customers, and shares fell heavily as a result.
The latest data shows Bertrandt trading at a five-year low and indicates that short sellers haven鈥檛 given up the chase yet, with driving short interest to an all-time high.
Colvin added: 鈥淪hort sellers, who have been targeting Bertrandt for much of the year, should feel vindicated for their tenacity.鈥�
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