Amid last week's Meta mania, Comm Svcs saw record inflows - BofA

AMID LAST WEEK'S META-MANIA, COMM SVCS SAW RECORD INFLOWS - BOFA

In their latest report on equity client flows, BofA Securities equity and quant strategist Jill Carey Hall notes a number of milestones occurred last week, including that communication services saw the largest inflow in their data history.

According to the BofA report, last week marked the largest U.S. equity inflows in seven weeks, and the biggest private client inflows in more than a year.

Of note, in a week that included Fed Chair Powell's hawkish stance at his Post-FOMC meeting press conference on Wednesday, Hall says clients were large net buyers of U.S. equities to the tune of $4.9 billion as they snapped up both single stocks and ETFs.

Hall also said that private clients generated their largest inflows since October 2022.

"Private clients were the biggest buyers of equities last week, led by purchases of ETFs and Tech stocks. Institutional clients were also net buyers after large outflows the week prior, while hedge fund clients were net sellers," writes Hall.

Clients bought stocks in six of the 11 GICS sectors, led by communication services and healthcare. Real estate and tech saw the biggest outflows.

It was also an especially big week for communication services S5TELS as Meta Platforms META, along with announcing a dividend, surged to fresh record highs on Friday. Hall noted that the group enjoyed its largest inflows since 2018 (when it was broken out as a sector). Also, she said the group has the longest recent buying streak at 14 straight weeks.

Finally, BofA said that sector ETFs saw outflows, led by Energy ETFs, despite single stock inflows into most sectors.

Hall added that communication services and healthcare "exhibited the widest spread between single stock inflows vs. ETF outflows this year, highlighting potential opportunities for active stock selection."

(Terence Gabriel)

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