You are here

Prices & Quotes - UK Markets - FTSE 100 (UKX)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Up 6,613.75
Change Today:

Heavily-shorted Pearson, Cineworld surge

By Michele Maatouk

Date: Wednesday 27 Jan 2021

LONDON (ShareCast) - (Sharecast News) - Shares of education publisher Pearson surged on Wednesday, with traders pointing to a short squeeze.
At 1020 GMT, the shares were up 11.8% at 851.20p.

CMC Markets analyst David Madden said: "There is no new news about the publishing company but it is known that a relatively large amount of the stock has been shorted, so it is possible that we are witnessing a major short squeeze.

"Recently, the US group GameStop, has undergone erratic moves as there is a tussle between short sellers and buyers. It might be the case that funds are flowing into Pearson to shake out some of the short sellers."

Other heavily-shorted stocks were also on the rise, with French real estate investment trust Klepierre and commercial real estate company Unibail-Rodamco up 17% and 13%, respectively. Polish video game developer CD Projekt and cinema chain Cineworld, which are also heavily shorted, 7.8% and 14% firmer, respectively.

GameStop shares rose a whopping 116% in pre-market trade.

Neil Wilson, chief market analyst at, said: "I would be careful about seeing this as a case of the Reddit crowd finding new targets right now. It is likely down to short covering as hedge funds back out of their positions in light of what has happened to heavily shorted stocks like GameStop.

"This is very much about managing risk. Given the situation across the pond vis--vis Merlin, I would think all hedge funds are taking a good hard look at all their short positions and deciding whether they are worth it. Shorting can result in potentially infinite losses, so the risk management is always against you if the flows are there from buyers. As a result of the short covering, or rather in anticipation of it, some traders (maybe some on Reddit, who knows?) may be front-running and contributing to the pump."

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


Price Data

Price 6,613.75
Change Today 25.22
01-Mar-21 Close 6,588.53

Top Risers

Price Change
Pershing Square Holdings Ltd NPV 2,610.00p +4.0%
Standard Chartered 482.40p +2.6%
St James's Place 1,232.00p +2.5%
Admiral Group 3,203.00p +2.4%
Rio Tinto 6,453.00p +2.4%
Johnson Matthey 3,240.00p +2.4%
Aveva Group 3,520.00p +2.3%
Anglo American 2,959.00p +2.1%
Prudential 1,484.00p +2.1%
Spirax-Sarco Engineering 11,155.00p +2.0%

Top Fallers

Price Change
JD Sports Fashion 809.60p -3.3%
Intertek Group 5,348.00p -2.4%
Barratt Developments 684.20p -2.0%
British Land Company 491.80p -1.8%
Flutter Entertainment 14,110.00p -1.7%
Whitbread 3,414.00p -1.4%
AstraZeneca 6,883.00p -1.4%
Next 7,476.00p -1.2%
Associated British Foods 2,369.00p -1.2%
Rolls-Royce Holdings 110.15p -1.1%