The ISEQ recovered 2 per cent at the open today after a late recovery on Wall Street and bargain hunters picked up cheap food stocks which took a hammering yesterday.
A late recovery on Wall Street offered some hope to investors that the sell-off in equity markets had ended. All major European markets opened higher this morning though the mood remained cautious.
Food stocks recovered in Dublin this morning after yesterday's mauling triggered by news of a foot-and-mouth outbreak in Co Louth. Glanbia bounced 20 per cent higher to euro 0.60 and Golden Vale gained 16.4 per cent to reverse losses sustained yesterday.
Financials were also stronger after Bank of Ireland issued an upbeat pre-results statement. Bank of Ireland gained 45 cents to euro 8.70, AIB rose 22 cents to euro 10.60 and First Active added 5 cents to euro 2.45.
London's equity market looked firmer today following a New York's late rally.
The FTSE 100 gained 88.9 at 5,403.7, after earlier rising more than 117 points. The advance came a day after the FTSE 100 index recorded its biggest one-day percentage fall since October 1992.
Many observers remained sceptical about the sustainability of the market's bounce however, and will be closely watching Wall Street's performance for any signs of fresh nervousness.
Technology and telecoms stocks led the way higher in London today after the Nasdaq Composite index climbed 3.7 per cent. Telewest was up 14.4 per cent, Spirent 13.1 per cent and Logica 12.1 per cent.
British Telecommunications was up 6.6 per cent amid reports that the company is on track to receive £2bn in proceeds from the sale of its property estate by early summer.