Largest exodus of tech stocks in 15 months


Largest exodus of tech stocks in 15 months

Saturday – 9 Safar 1442 AH – 26 September 2020 AD Issue No. [

Investors withdrew $ 25.8 billion from US equity funds in a week (AFP)

London: “Asharq Al-Awsat”

The weekly fund flow report from Bank of America revealed Friday that investors withdrew $ 25.8 billion from US equity funds in the week ending Wednesday, in the third-largest influx of flows ever from that class of assets.
Bank of America analysts said, based on data for the week ending September 23, from EPFR, a financial flow tracking company, that money was withdrawn from sectors that were the main beneficiaries of the recovery in the wake of the collapse of “Covid-19”. Last March.
Technology stocks poured into flows of $ 1 billion, the largest since June 2019, while $ 11.6 billion of US blue chips poured in.
The Standard & Poor’s Index lost 7.2 percent since the beginning of September, the first negative monthly performance since March, while the Nasdaq index fell more than ten percent.
Other big moves in investment flows this week included high-yield bond funds that recorded the largest inflow outflow since March, losing $ 5.4 billion.
Emerging market debt funds registered a flow of flows for the twelfth week in a row, while bond funds generally attracted $ 1.3 billion.
On Wall Street, the Standard & Poor’s 500 and the Dow opened lower on Friday, continuing the longest losing streak in a year, as concerns about the economy’s outlook for a future dominated by the Corona virus remain, putting pressure on investor sentiment.
The Dow Jones Industrial Average fell 120.93 points, or 0.45 percent, to 26,694.51 points, while the Standard & Poor’s 500 Index fell 9.93 points, or 0.31 percent, to 3,236.66 points. And the Nasdaq Composite Index gained 8.19 points, or 0.08 percent, to 10,680.46 points.
In Europe, telecom companies pushed stocks up a little Friday, but the main indicators headed for a sharp weekly decline, as the continent suffers a new wave of Covid-19 infections.
The pan-European STOXX 600 index fell 0.75 percent by 1432 GMT, and the French CAC 40 index fell 1.44 percent after the country set a new record for daily COVID-19 cases, and the prime minister warned Thursday that the government may be forced to re-restrict movement in Regions again. The German DAX index fell 1.8 per cent, as did the British FTSE 100 index by 1.57 per cent.
In Asia, the Nikkei index closed up 0.51 percent to 23,204.62 points. The broader Topix index gained 0.48 percent to 1634.23. But for the week, the benchmark fell 0.67 percent. And 148 stocks advanced on the Nikkei index, against a decline of 69 at the end of the week.
Dealers and analysts said that investors bought stocks before the next round of corporate earnings announcements to ensure they qualify for dividends from their holdings.


The American economy


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