BofA client buying wave biggest in 8 weeks
S&P 500 green, Nasdaq up ~1%; Dow ~flat
Tech leads S&P sector edges higher; gold up; bitcoin up >2%
U.S. 10-Year Treasury yield dips to ~4.37%
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BOFA CLIENT BUYING WAVE BIGGEST IN 8 WEEKS
Clients bought U.S. equities last week for the second week in a row BofA Securities equity and quant strategist Jill Carey Hall says in her latest report on equity client flows.
According to Hall, in a week where the S&P 500 index .SPX fell 2.1%, net buying of U.S. equities was +$4.9B, which was the biggest inflow since mid-September.
Similar to the prior week, clients bought both single stocks and ETFs, with single stock buying again entirely in large caps.
"Institutional and private clients were buyers for the second week and first time in two weeks, respectively, while hedge fund clients were sellers for the first time in four weeks," writes Hall.
The pace of corporate client buybacks slowed, but continued to track above seasonal levels as a percentage of S&P 500 market cap YTD. In fact, corporate client buybacks as a percent of market cap are on pace for record highs.
Clients bought stocks in seven of the 11 GICS sectors, led by tech, healthcare and communication services.
Financials, for the first time in six weeks, and energy, also saw inflows last week.
Clients sold industrials, materials, real estate and staples. At four weeks, materials has the longest recent selling streak.
Regarding ETFs, Hall says clients bought ETFs across styles (blend/value/growth) and sizes (large/mid/small cap).
In terms of sector ETFs, clients bought in seven of the 11 sectors, led by consumer discretionary (biggest inflows since February), materials and financials.
Healthcare and real estate ETFs saw the largest outflows.
(Terence Gabriel)
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