Bank of America Securities said that last week its clients became net sellers of US equities for the first time in four weeks, resulting in a total outflow of $1.6 billion.
“Excluding untagged flows (uncategorized sector/client group/size segment), clients were net buyers of single stocks and of equity ETFs,” strategists said in a note.
Private clients were the only net buyers, marking the fourth consecutive week of inflows. Institutional and hedge fund clients were net sellers for the fourth straight week and the second time in two weeks, respectively. Inflows were observed across all market cap sizes, BofA added.
Meanwhile, corporate client buybacks, although slower than the prior two weeks’ near-record pace, were the 10th-largest on record and have consistently been above typical seasonal levels for the past 15 weeks.
Sector-wise, Technology, Media, and Telecommunications (TMT) saw continued inflows. Specifically, clients purchased stocks in 7 of the 11 sectors, with Tech and Communication Services leading for the third consecutive week.
BofA said the latter continues to have the longest buying streak, now at 12 weeks. On the flip side, financials experienced the largest outflows for the second straight week.
Consumer discretionary stocks have now witnessed inflows for the past four weeks, following a spate of outflows since March. According to BofA, this trend may reflect the bank’s view “that the consumer is holding up OK despite some signs of weakness highlighted by companies this 1Q earnings season.”
“Rolling 4-wk avg. flows in the sector are now the highest since last July,” the note added.