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NKT short seller decreases investment slightly

Systematica Investments has reduced its short position on the Danish cable manufacturer slightly.

Photo: NKT

NKT is once again feeling a little pressure on the company's shares from short sellers.

NKT is the most shorted share on the Danish share market, but over June the pressure decreased slightly.

Wednesday, one of the short sellers, Systematica Investments, suffered a little on its invesmtent in the NKT price decline. Systematica's short position is now at 1.29 percent, and over June it has sat at over 1.3 percent, whereas on May 31 it was reported to be at 1.39 percent.

When a "shorter" shorts a share, the investor borrows the share from a shareholder in order to sell it on the stock exchange in the hope that it declines in value so it can be bought back at a lower price.

In this way, the investor can earn on the difference – minus a fee to borrow the share and potential curtage.

Funds must first report their transactions to the financial authority when they have crossed a limit of 0.5 percent of the share capital, and thereafter every time the reach intervals of 0.1 percentage points.

In the most recent monthly statistic from the financial authority, which publishes all short positions of more than 0.2 percent of the share capital in a company every Monday, NKT remains in first place.

12.24 percent of NKT has been shorted according to the numbers, a decline from 14.92 percent in May.

Wedneday, the NKT share increased by 3.4 percent after the company booked an order for cables to an offshore wind farm. Thursday, however, the share has declined by an entire 7.2 percent, due to concerns that the cables have been sold cheaply.

Here, you can see an oversight over the nine most shorted shares on the Danish share market and development over the past three months:

 

English Edit: Lena Rutkowski

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