ENGINEERING firm Weir Group remains by far the most shorted stock in the FTSE 100 according to data released today, suggesting investors continue to feel unease over the firm’s exposure to the US gas fracking industry.
Figures from Markit, the financial information provider, show Weir’s stock is three times more shorted than outsourcing firm Serco, its nearest rival for the undesirable accolade.
Short-selling occurs when investors – often hedge funds – bet that a firm’s share price is set to fall by borrowing stock from a broker.
Elsewhere traders continue to target commodity trader Glencore in the expectation that its bid for Xstrata will succeed and push its share price down.
The average FTSE 100 firm has just 1.7 per cent of stock on loan.