Short sellers have increased their positions in bookseller and stationer WHSmith by 200 per cent in the past six months, it has emerged.

The percentage of the retailer’s stock on loan has climbed from 2 to 6 per cent, figures from specialist monitor Data Explorers revealed.

The researcher noted: “What is interesting is that even though the share price has fallen by approximately 30 per cent since the May high, short sellers increased their positions markedly during the past week.”

Short sellers typically bet on share price falls to make their profits and the increased level of shorting of WHSmith indicates that they see potential for a further decline.

WHSmith will update on Christmas trading at the end of this month.

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