Short Monitor – Hammerson most shorted UK stock

Published on 20-07-2020 16:00:24


Source: Edison Investment Research, FCA.


Source: Edison Investment Research, FCA.

Hammerson is now the most shorted stock in the UK, with 13.1% of its issued share capital (ISC) on borrow, up 0.5% since the start of the month. On 16 July, Moody’s downgraded Hammerson’s issuer rating and senior unsecured rating to Baa3 from Baa2 amid the continuing damage inflicted on the retail sector by COVID-19. Hammerson confirmed a weak 16% rent collection for Q3 on 1 July and, along with Intu’s administration, exemplifies the significant headwinds facing REITs investing in retail.

The total short position in Premier Oil has reduced to 8.7%, falling 0.6% (9.3%) since the start of the month and by 10.9% since end-May (19.6%). Premier is now the fourth most shorted stock in the UK, moving down from pole position. Today Premier confirmed the sale and purchase agreement to buy BP’s Andrew Area and its Shearwater assets for up to US$565m; original terms of the deal created legal disputes with the company’s creditors, which was the primary reason behind the large short position against Premier.

Looking at movements in short positions for all UK equities since the start of July, Sainsbury’s and The Weir Group have increased the most and are up 1.5% to 5.2% and 1.6% to 4.2% respectively.

Hammerson is now the most shorted stock in the UK, with 13.1% of its issued share capital (ISC) on borrow, up 0.5% since the start of the month. On 16 July, Moody’s downgraded Hammerson’s issuer rating and senior unsecured rating to Baa3 from Baa2 amid the continuing damage inflicted on the retail sector by COVID-19. Hammerson confirmed a weak 16% rent collection for Q3 on 1 July and, along with Intu’s administration, exemplifies the significant headwinds facing REITs investing in retail.

The total short position in Premier Oil has reduced to 8.7%, falling 0.6% (9.3%) since the start of the month and by 10.9% since end-May (19.6%). Premier is now the fourth most shorted stock in the UK, moving down from pole position. Today Premier confirmed the sale and purchase agreement to buy BP’s Andrew Area and its Shearwater assets for up to US$565m; original terms of the deal created legal disputes with the company’s creditors, which was the primary reason behind the large short position against Premier.

Looking at movements in short positions for all UK equities since the start of July, Sainsbury’s and The Weir Group have increased the most and are up 1.5% to 5.2% and 1.6% to 4.2% respectively.

Subscribe


Share this with friends and colleagues