Share prices in Dublin closed more than 7 per cent lower, with the market failing to match the recovery in international markets generated by the mid-morning rebound on Wall Street. Dealers expect the Irish market to post substantial gains today in a catching-up exercise but warned that international markets are likely to be intensely volatile for weeks to come until share prices reach a level. Dealers said that trading volumes were not exceptionally big yesterday, although there was some solid selling of Smurfit before the Wall Street rebound. There was also some substantial bargain-hunting of the major financial shares at their lower levels and this bargain-hunting may push the financials further ahead today as long as overnight markets do not collapse again.

Among the financials, AIB lost 55p to 535p while Bank of Ireland fared even worse with the shares down 75p to 783p. Other financials were also sharply lower with Anglo Irish off 10p to 104p, Irish Life 29p lower on 340p while Irish Permanent lost 50p to 610p.

Smurfit recovered slightly in later trading but still closed down 29p on 188p despite a jump by JS Corp. CRH was 50p lower on 770p while James Crean lost 5p to 120p as AIB Investment Managers announced that it had sold 2.5 million shares last week. Avonmore/Waterford was 12p lower on 250p, Fyffes lost 8p to 95p while Greencore closed down 21p on 295p.

IAWS lost 25p to 240p, Independent was 45p lower on 355p, Irish Continental was 42p lower on 770p while Ryanair suffered the single worst fall of the day, tumbling 80p to 298p. Waterford Wedgwood was 8p lower on 76p.

Gilt prices lost some of their early gains as international equity markets regained lost ground. Most attention in the market will be focused on US Fedral Reserve chairman, Mr Alan Greenspan's testimony to Congress today.