The Most Shorted ASX Stocks This March

Here are the most shorted ASX stocks in March

When a stock has a high short interest, it means a meaningful portion of the available float has been borrowed and sold by traders betting the share price will fall. In simple terms, it is the market’s aggregate bearish view expressed with real money on the line.

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Domino’s takes the number 1 spot

The most shorted stock this month was Domino’s at 15.6%, making it the most shorted name on the ASX right now. The short case has been building for some time, centred on franchise profitability, store closures in Japan, and growing doubts over whether the growth story that once justified a premium valuation is now structurally weaker.

Treasury wines #2

Treasury Wine Estates sits at 14.8%. Shorts have been targeting the stock around Chinese tariff exposure, questions over the valuation of Penfolds, and execution risk tied to the portfolio restructure. It remains a heavily debated name.

Telix Pharmaceuticals #3

Telix Pharmaceuticals is at 14.2% and is one of the more interesting names on the list. Telix has been a genuine growth story in nuclear medicine and radiopharmaceuticals, so the high short interest likely reflects valuation scepticism more than concerns around the underlying business. The bear view is that the share price has run too far ahead of earnings.

Guzman y Gomez #4

Guzman y Gomez comes in at 13.75%, which looks largely like a valuation short. The stock listed at a significant premium and the short case is that the unit economics and rollout timeline may not justify the multiple the market has placed on it.

Boss Energy #5

Boss Energy sits at 11.37%. What stands out here is that short interest has actually fallen sharply in recent weeks, pushing it down from the most shorted stock on the ASX to fifth. That suggests some of the bearish positioning is being unwound, which is often a constructive signal for the stock.

Lynas Rare Earths

Lynas Rare Earths is at 10.50% and has recently moved into the top 10 most shorted names. The short case is centred on weak rare earth pricing, Chinese competition, and execution risk across its Malaysian and Australian processing assets. The company remains strategically important, but weaker pricing still clouds the near-term earnings outlook.

DroneShield

DroneShield sits at 9.19% and looks like a pure valuation short. The stock has become a market favourite on defence and counter-drone momentum, but the short view is that the market cap has run well ahead of the current revenue base.

NextDC

NextDC is at 9.04%, which is notable given the strong AI and data centre thematic. The short case here is centred on capital intensity. The company is raising and deploying huge amounts of capital to fund expansion, and the question is whether returns on invested capital will justify that spend before cash flow turns meaningfully positive.

Something interesting to note here

One notable takeaway is the absence of SaaS and tech stocks from this list, despite names like Xero, WiseTech, and Hub24 being among the ASX 200’s weaker performers recently. That suggests institutional short sellers are not as aggressively bearish on those names as the broader market selloff might imply, or at least are not willing to press a large active short position against them.

For us, that is an interesting signal. Even after the AI-driven selloff, the so called smart short money does not appear to be crowding into those SaaS and tech names in the same way it is in other parts of the market.