Short sellers set sights on Rio Tinto despite price spike

Original article by Peter Ker
The Australian Financial Review – Page: 13 & 28 : 10-Oct-17

Rio Tinto ranks among the 20 Australian-listed stocks that are most frequently targeted by short sellers. Short positions now account for about nine per cent of Rio Tinto’s shares, compared with less than one per cent three years ago. The resources group’s shares have posted double-digit gains over the last seven weeks, which has coincided with a sharp fall in the iron ore price, and some analysts expect further weakness in the price of the steel input. Peter O’Connor of Shaw & Partners says arbitrage trading may have contributed to the rise in short selling activity, given the price gap between Rio’s Australian and UK shares.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, DEUTSCHE BANK AG, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s