LIVE MARKETS-BofA clients dump stocks as tech outflows hit record 

By Reuters News

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BOFA CLIENTS DUMP STOCKS AS TECH OUTFLOWS HIT RECORD

BofA clients turned sellers of US equities last week as the S&P 500 .SPX slid 1.9%, with record outflows from individual stocks more than offsetting demand for ETFs.

In a note published Wednesday, BofA Securities equity and quant strategist Jill Carey Hall said clients pulled a net $14.8 billion from single stocks, the largest outflow on record in the firm's data. At the same time, clients bought $2.8 billion of equity ETFs after selling them the previous week.

Selling was broad-based across client groups. Institutional investors led the way, marking their third straight week of selling and one of their largest weekly outflows since BofA began tracking the data in 2008. Hall noted that October typically sees heavy institutional selling due to mutual fund tax-loss harvesting, although this year's pace has been unusually strong. Retail investors also sold stocks after buying the prior two weeks, while hedge funds turned sellers for the first time in five weeks.

Corporate buybacks accelerated for a third straight week but remained slightly below seasonal norms. Rolling 52-week buybacks as a percentage of S&P 500 market cap are at their lowest level since August 2021.

Technology stocks saw the heaviest selling, posting their largest outflow on record. Industrials extended their outflow streak to 12 weeks and registered their largest weekly outflow ever. While the streak itself is not extreme by historical standards, Hall said the magnitude of recent outflows has reached record levels.

Energy stocks attracted the strongest inflows, ending a six-week stretch of outflows. Clients also bought real estate and consumer staples.

On the ETF side, clients were buyers across investment styles and market-cap categories. Technology ETFs saw the largest outflows, while healthcare ETFs attracted the most inflows.

(Terence Gabriel)

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