Last week, Bank of America's corporate clients executed the second-largest share buybacks in the bank's records dating back to 2010, according to strategists at the firm.
Buybacks are currently tracking above seasonal levels for a second consecutive week. However, year-to-date (YTD) buybacks as a percentage of S&P 500 market capitalization stood at 0.19%, below the 2022 highs of 0.21% at this time.
BofA’s clients were net buyers of U.S. equities at $1.2 billion, with most flows going into ETFs. Single stocks experienced outflows in four of the last five weeks. Client preferences showed buying of large caps and selling of mid and small caps during the last week.
“Clients sold 7 of the 11 GICS sectors, led by Industrials — 4th largest outflows from this sector in our data history (since ’08). Comm. Svcs. & Tech (TMT) led inflows for a second consecutive week,” the strategists said in a note.
On the other hand, defensives saw outflows for a third consecutive week. Notably, hedge funds, institutional investors, and retail clients were net sellers in the observed period.