Halfway through the month of May, we are starting to see divergence from previous sector interest as more relaxed lockdown measures have seen green shoots of opportunity emerge. Cap Goods overall remains the busiest sector for Redburn flow, however a significant increase in Institutional buying interest of Chemicals has seen the space come in a close second. Banks remain quiet for Hedge Funds, who have focussed more of their time on selling Chemical names and Semis. General Retail has been better bid by the Hedge Funds, while for Institutions we have seen decent buying interest in Industrial Services and Utilities.

A new month has brought with it new themes, and while the some remnants of March are unlikely to disappear quickly (ie Institutional focus on Pharma), an uptick in flow amongst the Cap Goods names and Airlines by Hedge Funds, does reinforce the sense of green shoots beginning to emerge.