Short-selling interest in Mitsubishi Motors rises: trader
TOKYO (Reuters) - Short-selling interest in Mitsubishi Motors Corp (7211.T) has risen sharply, a trader said on Wednesday, after the stock spiked more than 13 percent over the past four sessions in response to the automaker's strong half-year operating profit.
Mitsubishi Motors lifted its six-month operating profit ended in September by 41 percent to 50.8 billion yen ($518 million) after the market close on Thursday. It confirmed the earnings results on Tuesday after the market close.
The stock was up 2 percent to a two-month high at 1,161 yen on Wednesday morning. It has risen 13.4 percent since Thursday's announcement, shrugging off a report that the automaker plans to raise around $2 billion in a public share offering as early as January to pay back top shareholders for a 2004 bailout that enabled its decade-long turnaround.
But a trader said the stock was going up "a little too high" and that it was getting expensive to short the stock, at 6 to 7 percent per annum.
"The borrowing cost is quite high ... and the borrowing is quite tight. I don't think people are too bullish on the stock," he said.
According to data provider Markit, 8.78 percent of Mitsubishi Motors' outstanding shares were out on loan as of October 28. It was 8.22 percent at the end of September.
(Reporting by Dominic Lau; Editing by Stephen Coates)
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