French semiconductor firm leads most shorted European stocks
Soitec, the French semiconductor firm is the most shorted European stock on a list published by Markit ahead of company results being announced over the coming week.
Some 10.6% of the company’s shares are on loan, according to Markit data.
Other key European stocks on loan include Portugal Telecom, Schmolz+Bickenberg, Innovation Group, Daily Mail & General Trust, Homeserve, Sonova Holding and Mothercare.
A common thread between some of these firms is their focus on emerging markets to assist in turning around their businesses.
Markit said that Soitec is looking to tie up a joint venture in the area of solar technology with a Saudi firm. And Portugal Telecom is hoping for a reverse of the 10.4% shorting of its stock via positive news coming out of Brazil, where its Brazil Telecom unit accounts for half the group turnover.
By contrast, while Mothercare does make the list, its level of shorting at 3.4% represents a two and a half year low, as short sellers have moved to cover their positions in recent weeks.