After a period of soaring share prices for tech stocks, the market is readjusting to a more rational view of the relative prospects for companies in different market sectors.

For instance, share prices of major beer and spirits companies like Allied Domecq Whitbread and Scottish & Newcastle have all recovered significantly from the depressed levels which saw all three pushed out of the FTSE 100 Blue Chip index recently. Indeed Allied Domecq now seems likely to return to the top table when the acquisition of Cable and Wireless Communications - one of the new entrants - is completed in April.

Other stocks to recover include Marks & Spencer, following favourable comment on its improved policies for allocating merchandise to stores. However there are few signs of another bidder appearing at present, following entrepreneur Philip Green's withdrawal.

Morrison's share price has risen further, reflecting the recent good results but still well below the 160-170 price peak last year. As the Financial Times commented: "The real puzzle is why Morrisons' shares should remain so out of favour with investors. The shares are at a discount to Tesco ... it appears that Morrison has been overlooked".

Directors Tony Clegg and Andrew Hartley of Syltone have recently purchased shares in their company at prices ranging from 83p to 89p. Directors' dealings in their own company's shares have to be reported to the London Stock Exchange, and purchases are often seen as an indicator that the shares are good value.

Lastminute.com, a new issue that attracted substantial publicity, has had a disappointing debut with the shares currently well below the offer price of 380p, and many new shareholders nursing small losses on their tiny allocation of shares. This float may mark the end of the current surge in popularity for internet stocks.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.