Shares of PLS Group Limited advanced on Monday, closing 1.2% higher at A$4.17 after trading in a range between A$4.07 and A$4.24. The move coincided with a modest uptick in a key lithium benchmark, though rising short positions signaled lingering caution among some traders.
Lithium Market Provides Support
The reference price for battery-grade lithium carbonate in China, a crucial input for electric vehicle batteries, increased 0.74% to 135,500 yuan per tonne. This provided a tailwind for the Australian lithium miner, which is often viewed as a bellwether for battery metal sentiment on the ASX.
Short Bets Increase
Despite the share price gain, positioning data revealed a build-up in bearish bets. Short interest in PLS reached 8.17% of available shares as of February 2, marking a one-percentage-point increase from the prior week. This indicates a segment of the market is anticipating potential weakness.
Focus Turns to Financials
All eyes are now on the company's upcoming financial report. PLS Group is scheduled to release its FY26 interim results on Thursday, February 19. Investors are keenly awaiting management commentary on key operational metrics, including product pricing, production costs, and shipment volumes, which will shape the near-term outlook.
The broader S&P/ASX 200 index rallied 1.85% on the day, providing a supportive backdrop for miners. However, the path for lithium remains volatile, with prices sensitive to shifts in Chinese demand and industrial policy, leaving PLS shares susceptible to swift reversals despite the day's gains.
