Shares in Dublin-based chip design firm Parthus Technology rebounded sharply on the London Stock Exchange yesterday, picking up 18 per cent to 49p following a statement by the company that it expected its second-quarter results to remain on track. Parthus issued the statement in response to a heavy fall in its share price over the past few days and to reassure the market about its financial position.

"The company does not currently foresee any material change in expectations over the short term and is unaware of any operational reason for the recent sharp decline in the company's share price," it said.

Parthus lost 4-1/2p to 42p sterling when the London Stock Exchange closed on Wednesday, bringing its losses over the previous two days to 22 per cent.

But Davy Stockbrokers described the market's treatment of Parthus as an over-reaction and gave the shares a buy tag.

"I'm not surprised Parthus issued a statement or the content of the statement," said Mr Paul Phelan, a technology analyst with Davy Stockbrokers.

"There was nothing specific happening in relation to Parthus. There was no news directly from the company - good or bad. I guess it was rumour and people maybe overreacting a bit to the real negative sentiments that are out there. We've been very confident about the trading that Parthus has been going through lately."

A profit warning by one of Parthus's peer companies during the week may have had an impact. He said he was not expecting a similar warning from Parthus.