BLUE-CHIP stocks, in a volatile session, yesterday regained a fraction of the 300 points the Dow index lost in the previous two sessions. The Dow Jones industrial average gained 27.57 points to end at 6,611.05, but in the broader market, declining issues held a narrow lead over gains.
Analysts were quick to caution that the gains put only a small dent in the losses suffered by the index. Several said that the outlook would remain extremely uncertain, at least until the question that triggered the decline - the Fed's intentions in relation to US interest rates - go unanswered.
Analysts noted that banking and drug stocks, which have been at the forefront of the market's roller-coaster ride so far this year, once again took the lead yesterday, posting solid performances.
They also counselled those looking for a real reversal in the recent downturn to keep their eyes on the technology stocks. "Last July, the techs were the first group to go lower, the first to bottom and first to turn higher again," said Mr Richard Cripps, chief market strategist at Legg Mason Wood, Walker.
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