Bank of America (BAC) experiences a seventh consecutive week of capital inflow into its stocks, signaling significant investor confidence and positive market sentiment.
Bank of America’s customer transaction data, as reported by market analysts, reveals a substantial increase in stock purchases since mid-December, with customers consistently buying more U.S. stocks for the second consecutive week.
According to analysts at Bank of America, the total value of these stock purchases over the past five weeks has reached an impressive $3.3 billion, marking the largest amount in this period.
This trend of individual stock purchases has persisted for seven consecutive weeks. In contrast, funds tracking stock indices through equity mutual funds have seen net sales for the third week in a row.
Notably, hedge funds and large-scale investment clients are making purchases for the first time in ten and five weeks, respectively. Although the pace of share buybacks by companies has slowed down, it has remained above normal levels for the past ten weeks.
The technology, media, and telecommunications sectors, along with significant purchases in the communication services and healthcare sectors, have prominently contributed to this trend.
On the other hand, the financial sector has witnessed the most significant investment pull in the past seven weeks. While less risky sectors experienced a third consecutive week of increased investments, sectors considered more economically sensitive, excluding the financial sector, have seen an uptick in investments for the first time since November.
Bank of America analysts expressed optimism about economically sensitive sectors, stating, “Our outlook for economically sensitive sectors is more positive.”
This consistent trend of capital inflows into Bank of America stocks highlights growing confidence among investors, diversified sectoral investments, and an overall positive outlook in the market.
source: tr.investing.com / prepared by Melisa Beğiç