Some bounce in the step of investors

Market Report:Having consistently endured a more pronounced sell-off than other markets this year, it was apposite that the Iseq index of Irish shares enjoyed a healthier than average bounce in its fortunes yesterday, climbing 4.4 per cent.

The market is still 5 per cent down on the week, but it could have been so much worse were it not for yesterday's recovery.

Irish financial stocks made twice the gains of their counterparts on London's FTSE 100.

Bank of Ireland was feeling particularly buoyant, surging 9.8 per cent to close up 87 cent at €9.77. AIB gleaned almost as much from the buying frenzy, and climbed 6.8 per cent to €13.84, a gain of 89 cent on Thursday's closing price.

The market is now anxiously waiting for what light Anglo Irish Bank will shed next week in the outlook statement that accompanies its full-year results. The numbers themselves are expected to be strong, but as a note from Davy Stockbrokers put it yesterday, the market is "sceptical".

Anglo's share price was up 5 per cent yesterday at €9.38, but the stock is trading at around 45 per cent down from its year high and at less than six times Davy's earnings forecast for 2008. Davy, which expects Anglo's management to be upbeat on results day, says the sell-off has been "way overdone".

Dealers yesterday claimed to see signs of value investors getting back in the market, picking up stock at what they believe to be very cheap levels.

The second-tier stocks that tend to be held by contracts-for-difference (CFD) investors were badly sold-off earlier this week, but made a comeback yesterday.

These stocks included Ryanair, up 4.7 per cent, and United Drug, which dragged itself out of the mire to the tune of a 9 per cent gain, up 30 cent on the day.