Weaker international markets failed to dent an exuberant performance in Dublin, where share prices rose by 3.5 per cent to add to the 3.8 per cent gain notched up on Tuesday.

But while some dealers said that the recovery was an understandable response to Wall Street's record overnight rise, others felt that some private investors had lost the run of themselves and bought into the market at levels which subsequently left them nursing losses.

One broker said bluntly: "Private investors should be staying clear of this market and nobody should be deluded into thinking that a record rise on Wall Street means the end of this period of weakness."

That sort of advice is, however, likely to fall on many deaf ears, with the temptation of a quick profit likely to draw many private investors for what they believe are bargains.

It was not solely private investors who drove the market higher; there were strong indications of some aggressive bidding for AIB and Bank of Ireland from American institutions during the afternoon session. The heaviest trade in was AIB which dealt up to a high of 935p before closing up 52p on the day on 927p while Bank of Ireland was up 37p on £11.12 after hitting £11.25 just before the close. CRH also saw some strong demand after bumper interim results and upgradings and closed up 40p on 900p.

Smurfit remains a volatile stock after the heavy selling of late last week. It dealt up as high as 117p before closing up 4p on the day on 114p. It is understood that the American seller who unloaded 10 million shares at 95p last week has now completed his business and that this particular overhang has now been eliminated.