50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Clients' large cap stock sales drive weekly outflows of $2.4bn: BofA

Published 10/15/2024, 06:13 AM
© Reuters.
US500
-

Investing.com -- Bank of America Securities clients sold U.S. equities last week, offloading $2.4 billion after being net buyers the previous week.

BofA says clients sold exchange-traded funds (ETFs) but continued to purchase individual stocks. The outflows were concentrated in large-cap stocks, while small and mid-caps saw inflows.

Hedge fund, institutional, and retail clients were all net sellers, with hedge funds and institutions marking their third consecutive week of selling, while private clients turned to selling after being buyers the prior week.

The largest inflows were seen in the Communication Services and Energy sectors, with net purchases in Energy reaching their highest level since June.

Real Estate, on the other hand, had the longest recent selling streak, extending to eight weeks.

Meanwhile, ETF outflows were seen in 6 of the 11 sectors, led by Energy, which experienced the second-largest outflows since 2017, along with Technology and Health Care. In contrast, all three sectors saw inflows into individual stocks.

Consumer Discretionary ETFs also recorded significant outflows, BofA notes.

Looking ahead, strategists said institutional stock sales typically rise in October, ahead of the October 31 deadline for mutual funds to realize capital gains.

"Indeed, this group has sold stocks for the last three weeks,” they wrote. “Selling by retail investors typically picks up in December ahead of the 12/31 cutoff for individual investors."

Meanwhile, corporate client buybacks have slowed heading into earnings season, which is typical, but they are expected to increase next week.

According to BofA, buybacks continue to track above seasonal averages, with trailing 52-week buybacks as a percentage of the S&P 500 market cap reaching an all-time high.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.