London’s house builders and consumer groups targeted by short sellers
House builders and consumer groups are coming under pressure from short sellers as investors bet on a downturn across both sectors in the coming months. The number of London-listed firms with over five per cent of their shares held short more than doubled from 27 to 60 in the three months to October, according to [...]
In recent months, London's house builders and consumer groups have faced increased pressure from short sellers. Short positions, which represent investors betting on a company's stock decline, have surged in London-listed firms. According to White & Case, the number of companies with over 5% of their shares held short rose from 27 to 60 in three months, while those with more than 10% short positions increased from two to 14.
Housebuilders, building materials manufacturers, and retail groups have been the main targets, with Vistry, Ibstock, WH Smith, and Ocado being among the most affected. Analysts attribute the rise in short positions to surging material costs, falling profits, and sticky inflation, which has impacted consumer confidence. White & Case has urged companies to be aware of this trend and proactively engage with investors.
The Financial Conduct Authority has also changed its rules, removing the requirement to disclose short sellers by name, which has allowed larger positions to be taken.
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