BofA clients keep the faith in Tech, Communication Services
Main U.S. indexes edge green; FOMC minutes due after early close
Materials lead S&P 500 sector gainers; Comm Svcs weakest group
Euro STOXX 600 index up ~0.7%
Dollar dips; bitcoin down >2%; crude edges up; gold gains ~1%
U.S. 10-Year Treasury yield falls to ~4.40%
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BOFA CLIENTS KEEP THE FAITH IN TECH, COMMUNICATION SERVICES
In her latest report on equity client flows, BofA Securities equity and quant strategist, Jill Carey Hall, says that last week, BofA institutional and private clients bought equities while hedge funds continued to sell.
In a week where the S&P 500 .SPX edged lower by just 0.1%, Hall says clients were net sellers of U.S. equities for a second straight week (-$3.1B).
"Hedge funds drove the selling (sellers for a third straight week), while private and institutional clients were net buyers for the fifth straight week and first time in five weeks, respectively. Large and mid cap saw inflows (both for the fourth week) while small caps saw outflows (for the first time in five weeks)," writes Hall in a note.
In terms of the 11 GICS sectors, BofA clients bought stocks in five of the groups, led by inflows into tech for a fourth week in a row. Communication services continued to have the longest buying streak (last 13 weeks). Consumer discretionary saw the largest outflows.
Hall noted recent flow momentum in real estate:
"After outflows most weeks this year, Real Estate stocks have seen inflows for the last four weeks. We are overweight large cap Real Estate, where we see attractive dividend yields in a total return world," she writes.
In terms of the notable first half 2024 flows, Hall says that institutional and hedge fund clients have both been sellers of equities YTD, while retail flows have been close to neutral. Meanwhile, the total dollar amount of corporate client buybacks is already close to 2023 full-year levels.
(Terence Gabriel)
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FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:
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HAVEN BRITAIN? CLICK HERE
A CLOSER LOOK AT U.S. DRUG PRICING RISKS - CLICK HERE
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SUNNY START IN EUROPE - CLICK HERE
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