LIVE MARKETS-BofA clients step up their selling

Reuters
09 Jul
LIVE MARKETS-BofA clients step up their selling

Nasdaq edges higher; Dow, S&P 500 dip

Energy leads S&P sector gainers; Utilities weakest group

Dollar rallies; bitcoin gains; crude up >1%; gold off ~1%

US 10-Year Treasury yield rises to ~4.43%

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BOFA CLIENTS STEP UP THEIR SELLING

BofA Securities equity and quant strategist Jill Carey Hall says that last week, with the S&P 500 index .SPX rallying 1.7% and continuing its push into record high territory, clients were net sellers of U.S. equities for the second straight week, logging the biggest outflows since late August (-$6.9 billion) and 6th-largest outflows in history since 2008.

Clients sold single stocks (biggest sales since July 2023), while snapping up ETFs.

"Selling was led by institutional clients (who have sold in 8 of the last 9 wks.); hedge funds were also net sellers for a 3rd consecutive week. Private clients returned to buying after selling the prior week (and have been buyers in 28 of the last 30 wks.)," writes Hall in her note.

Hall added that corporate client buybacks slowed to their lowest weekly reading since October 2023.

Clients sold stocks across all 11 GICS sectors for the first time since early November 2022. Hall noted that the last time selling was as broad-based, the subsequent four-week S&P 500 .SPX gain was +8%.

Outflows were largest in communication services, tech and industrials. At seven straight weeks, utilities has the longest recent selling streak, and the group saw the biggest sales by BofA clients of any sector in H1.

As for ETFs, Hall says clients bought equity ETFs for a fifth week in a row. With this, they continued to add blend and value ETFs for the fifth week, but offloaded growth ETFs for the 5th time in seven weeks.

Unlike the broad-based selling in single stocks, clients bought ETFs in seven of the 11 sectors.

Energy and real estate ETFs saw the biggest inflows, while tech and financial ETFs suffered the largest outflows.

(Terence Gabriel)

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