IBM announces $15bn share buyback

IBM is one of the technology industry's main bellwether stocks

Computer giant IBM has announced plans to buy back $15bn (£7.6bn) of its shares, sending its stock price up 4%.

The planned repurchase, which is equivalent to about 10% of IBM's market value, impressed analysts as it comes at a time of recession fears in the US.

Shaw Wu of American Technology Research said IBM was "showing its confidence" despite a "difficult environment".

IBM said it now expects its 2008 profit to rise 16%. Last month it unveiled a 24% rise in quarterly earnings.

The company's share buyback announcement gave the US markets a major lift on Tuesday, with the main Dow Jones index advancing 115 points.

IBM spent $18.8bn buying back shares last year.