Short the Dip? Bearish Bets on U.K. Stocks Increase Amid Selloff

  • U.K. equities short loan balance at 9-year high: IHS Markit
  • Short sellers have added to bets against outsourcing firms

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While some European investors rush to buy the dip after the recent slide in equities, short sellers are doing the opposite with U.K. stocks.

Bearish bets on stocks in the FTSE 350 Index including Capita Plc and J Sainsbury Plc have risen amid the selloff, according to an IHS Markit Ltd. report dated Thursday. The current short loan balance of 30.8 billion pounds ($43.3 billion) represents the largest position for short sellers in U.K. equities since the first quarter of 2009.