The ISEQ fell 69 points or 1.3 per cent in morning trading in a nervous opening session after further falls on Wall Street overnight. But a recovery in Asian markets and positive statements from Nokia may prevent further falls.
The financial sector still looked weak this morning with AIB down 8 cents at 11.22 and Bank of Ireland off a hefty 43 cents to euro 9.40. CRH also fell victim to the bearish mood falling 85 cents to euro 16.85.
Eircom gained 87 cents to euro 2.48 after the telecoms sector received a boost from positive profits statement from Finnish mobile phone giant Nokia.
But Smurfit fell sharply after its US subsidiary Smufit Stone warned of a profits slowdown this morning. Smurfit shares are off 22 cents to euro 1.75.
London shares rallied in late morning as telecom, media, and technology shares recovered much of their earlier poise following the release of the Nokia statement.
The main focus remained directed towards Wall Street after last night's savage falls which saw the Dow close below 10,000 and the Nasdaq close under the 2,000 level as fears over the Japanese banking system were added to the current woes over the global economy.