Investing.com -- Bank of America Securities said that its clients made modest equity purchases last week, bringing in $0.6 billion after a week of outflows.
Investors focused on both single stocks and exchange-traded funds (ETFs), with the latter seeing the larger inflows, BofA revealed in a Tuesday note. Large and small-cap stocks experienced positive flows, while mid-caps saw outflows.
Private clients, along with corporates, were the primary net buyers, marking the first inflows from this group since early September. Meanwhile, institutional and hedge fund clients continued to sell equities for the second consecutive week.
Corporate buybacks slowed but remain above seasonal norms as a percentage of S&P 500 market capitalization, according to the note. Trailing 52-week buybacks, as a percentage of the index's market cap, are at an all-time high.
As tax-loss selling season approaches, institutional clients' stock sales tend to rise, especially ahead of the October 31 deadline for most mutual funds to realize capital gains.
“Indeed, this group has sold stocks six of the last seven weeks,” strategists note. “Selling by retail investors typically picks up in Dec. ahead of the 12/31 cutoff for individual investors.”
BofA says its clients purchased stocks across six of the 11 sectors last week, with Consumer Discretionary, Communication Services, and Health Care leading the inflows.
In contrast, Tech and Industrials saw the largest outflows, with net sales of Tech hitting their highest level since August.
Real Estate remains on a seven-week selling streak, though BofA continues to view the sector favorably for income and quality.
Amont ETF flows, seven of the 11 sectors saw inflows, with Utilities leading the way. Consumer Discretionary, Real Estate, and Health Care ETFs also attracted positive flows.
Clients showed interest in both Growth and Value ETFs, while selling off Blend ETFs. Also, they favored large-cap and broad-market ETFs but were net sellers of small and mid-cap ETFs.