LIVE MARKETS-BofA clients turn away from tech

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BOFA CLIENTS TURN AWAY FROM TECH

BofA Securities equity and quant strategist Jill Carey Hall says that last week, with the S&P 500 index .SPX jumping 5.3%, clients were net buyers of U.S. equities (+$6.0 billion) for a fourth straight week.

Clients bought both single stocks and ETFs for a fourth week in a row, and purchased stocks in all three size segments for a second straight week.

"Hedge fund (HF) clients were buyers for the second week (biggest inflows since August), while institutional and private clients were sellers. This marks the first week of private client selling in 23 wks., ending a record buying streak by this group." writes Hall in her note.

She adds "corp. client buybacks accelerated wk/wk but were lower than typical seasonal levels for the second consecutive week. After peaking at the end of earnings season, buybacks typically continue to decelerate between now and late June."

Hall says that clients bought stocks in seven sectors, led by financials, healthcare, and industrials.

Clients sold tech for the first time in seven weeks. Seven straight weeks of buying was the longest recent buying streak of the sectors. Communication services, materials and real estate also saw outflows.

Regarding ETFs, Hall says that clients bought ETFs across styles (growth/value/blend), but unlike recent weeks, they bought large-cap and broad market ETFs while selling small/mid-cap ETFs.

Clients snapped up ETFs in five sectors, led by healthcare and consumer discretionary.

Outflows from tech ETFs continued to increase, with the rolling 4-week average of tech ETF flows turning negative for the first time since January.

(Terence Gabriel)

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