Apr 30 2024: According to analysts at BofA, last week marked a significant uptick in US equities inflows, with the largest influx seen in eight weeks and clients being net buyers for the first time in five weeks.
BofA’s equity client flow trends note highlighted that clients purchased both single stocks and ETFs, with single stocks leading the way. All client groups, including hedge funds, retail investors, and institutions, were net buyers.
The investment bank noted a notable increase in communication services inflows, which reached near-record levels. Clients showed consistent interest in this sector for 25 out of the last 26 weeks, with last week’s inflows being the largest since March and ranking as the seventh largest in the bank’s data history. This surge coincided with strong first-quarter results in the sector and Alphabet’s dividend initiation.
Additionally, clients displayed renewed interest in Health Care stocks, marking the sector’s largest inflow since January, following a period of selling since mid-February. Energy stocks also experienced accelerating inflows over the past four weeks, indicating a shifting sentiment towards these sectors.