BofA clients sold equities last week as buybacks slow

Published 29/07/2025, 10:18
© Reuters.

Investing.com -- Bank of America (BofA) clients turned net sellers of U.S. equities last week, pulling $1.4 billion from the market despite a 1.5% gain in the S&P 500.

BofA said the selling was led by institutional investors, who have now been net sellers in 11 of the past 12 weeks. Hedge funds also resumed selling after a two-week pause, while private clients remained steady buyers for the 31st time in the last 33 weeks.

Corporate client buybacks remained muted for the fourth consecutive week and fell below seasonal norms.

“We have actually seen a deceleration in buybacks as a % of mkt. cap since early March,” strategist Jill Carey Hall said, noting this may reflect the impact of elevated interest rates and equity valuations. She added that it expects “some shift toward dividends.”

Sector flows showed broad weakness, with outflows in eight of eleven groups. Technology and Communication Services saw the largest withdrawals, reversing inflows from the prior week.

Utilities extended their selling streak to ten straight weeks. Commodity-linked sectors such as Energy and Materials stood out, with Energy seeing its first inflow in five weeks.

On the ETF side, clients maintained a strong bid, with net buying accelerating to the highest level in a month. Inflows spanned all major equity styles and size segments, although broad market ETFs experienced outflows.

Health Care and Communication Services led sector ETF inflows, while Consumer Discretionary posted its first weekly outflow since mid-June.

By size, mid-caps were the only group to see net inflows, while large and small caps experienced selling.

Overall, BofA’s rolling four-week average of client equity flows remained in negative territory, signaling a cautious tone among investors.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.