Cash flows out of tech funds for ninth week

Tech mutual funds had their ninth consecutive week of more money flowing out than in, a stretch not seen since 1997, according to a report Friday by Banc of America Securities.

The pending April 15 tax deadline may be contributing to investors cashing out some of their mutual funds, Thomas McManus, Banc of America Securities equity portfolio strategist, said in a statement.

Tech funds saw a net of $270 million head for the doors last week, according to the report.

In January, more money flowed into tech mutual funds than out for a four-week stretch. Market strategists at the time said they wanted to see a three- to four-month period of net inflows to call a recovery.

Phil Dow, a market strategist with Dain Rauscher Wessels, said fund stability may be on the horizon, because the weak holders have unloaded their investments and the die-hards are left in the game.

"We're trying to find the bottom and it's been very painful," Dow said. "The catalysts may be when Cisco and Sun Microsystems say they don't think it can get any worse and start a share buy-back program."

When companies buy back a portion of their shares outstanding, Wall Street looks favorably on such actions. It signals confidence by the company and reduces the supply of shares in the market.