FIS hot stocks: 16 May 26 May 2016 London Reporter: Drew Nicol
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Energy producers and their service providers, along with representatives of the fast food sector, took the brunt of short sales last week, according to the FIS Astec Analytics hot stocks list.
In Europe, Euronav, a supertanker operator for the transportation of oil and gas, took the top spot as continued volatility in the commodity sector caused a knock-on effect on the industry’s service providers.
Short sellers are quickly closing out their positions after some were caught by a sudden recovery in oil price, bringing short interest down to less than a third of what it was three months ago, Astec data has shown.
In the Americas, hot stock regular SolarCity Corporation held its first-place position for a second week.
A share-price resurgence followed a plummet, meaning utilisation of SolarCity’s shares hit 100 percent, leaving nothing for borrowers to short and causing the market price to rise.
A fundamental change in the company’s fortunes will force short sellers to rapidly rethink their positions, Astec commented.
In the Asia Pacific, it was the turn of Want Want China, a Chinese snack food producer, to come in first place for the region, following a 40-percent drop in its share price so far with year.
Utilisation reached 80 percent last week and seems likely rise as short sellers remain hungry for greater profits, Astec said.
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