Upbeat Cisco starts tech frenzy

CISCO chief executive John Chambers effectively called the bottom of the downturn in the technology sector and sent embattled shares in computer and software groups soaring from London to Tokyo.

Chambers said business for his group, which makes internet communications equipment, had stabilised over the past few months and was on track to hit targets in November.

Asked if that signalled the technology sector was about to pull out of its 18-month nosedive, Chambers said: 'The plateaux usually occur and then business breaks one way or the other. Time will tell which way it goes this time. I tend to be an optimist.'

Combined with comments-from Oracle software-chief executive Larry Ellison suggesting his group's orders had also settled at current levels, the remarks put buyers in a bargain hunting frenzy for technology shares.

A clearer picture of the state of the global technology market should emerge on Thursday when chip giant Intel is scheduled to brief analysts.