Australian banks face rising short-selling activity
Short-selling activity against major Australian banks is increasing, as investors bet on falling share prices despite record profits. Data from the Australian Securities and Investments Commission, via Shortman, indicates that short positions in Commonwealth Bank (CBA) have risen from approximately 0.6% of its shares last September to more than 2%.
Westpac, Australia's second-largest mortgage lender, has seen a similar trend, with short positions rising to just under 2%. This bearish sentiment is driven by concerns regarding a slowing home loan market and the potential end of a long-term property price boom.
Despite these bets, the banks remain highly profitable. Commonwealth Bank reported a record $11 billion profit last year with a 14% return on equity.
Entities
Australian Securities and Investments Commission · Commonwealth Bank · Westpac
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Short positions in Commonwealth Bank increased from approximately 0.6% of its shares last September to over 2%. www.theage.com.au · www.watoday.com.au · www.smh.com.au
- [● 3 SOURCES] Short positions in Westpac have risen to slightly less than 2% over the same period. www.theage.com.au · www.watoday.com.au · www.smh.com.au
- [● 3 SOURCES] Commonwealth Bank (CBA) reported a record $11 billion profit last year. www.theage.com.au · www.watoday.com.au · www.smh.com.au
- [● 3 SOURCES] Commonwealth Bank achieved a return on equity of 14%. www.theage.com.au · www.watoday.com.au · www.smh.com.au