"A step towards settling the Cyprus problem and without undoing the European Union (membership) prospect is very positive," said Laiki Investments senior analyst Yiannis Tirkides. But another broker said the market may have overreacted. "It is overly biased to look at things positively. Things have not really changed that much on the ground. We don't know for sure that things will get better in future," the broker said.

As recently as early October, the market was flirting with the 100 level, having fallen precipitously from 800 at the peak of its short-lived boom in 1999. The Government continues to toy with various schemes meant to underpin the market, but investors caught out when the market crashed are still licking their wounds - it's probably too soon to imagine that the party will start all over again.