Jack Dorsey has confirmed that he will be resigning as Twitter's chief executive - prompting wild swings in its share price.

Posting on the platform he said that it was "finally time for me to leave", explaining in a statement from Twitter itself that it was "because I believe the company is ready to move on from its founders".

Parag Agrawal, the former chief technology officer, has been announced as the new CEO and a member of the board with immediate effect, and said he was "honoured and humbled" by the appointment.

Shares in the social media platform rose 9% on market opening on Monday morning following a report by CNBC that Mr Dorsey, 45, who co-founded Twitter in 2006, was to leave his role.

Trading was halted on the New York Stock Exchange after the spike, but shares resumed trading with a gain of more than 4.5% ahead of where they started the day.

However the gains later fell away and the stock closed 2% below its opening price.

Mr Dorsey will remain the chief executive of financial payments company Square, which has a market capitalisation of over $98bn (£73bn) compared to Twitter's $38bn (£28bn).

Dorsey under pressure

Mr Dorsey faced ousting last year when Twitter stakeholder Paul Singer, the found of Elliott Management, publicly questioned his ability to run both companies at the same time.

The investment firm eventually reached a deal with Twitter's management.

Following the announcement, executives at Elliott said in a statement on the appointment of Mr Agrawal and new chairman Bret Taylor that they were "confident that they are the right leaders for Twitter at this pivotal moment for the company".

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: ''Such has been the consternation surrounding Jack Dorsey's 'part-time' role as CEO of Twitter, that it's little surprise investors initially reacted positively to speculation that he was leaving the platform.

"But the initial euphoria fizzled out, as the new pick for the driving seat, Parag Agrawal, the current chief technology officer, appeared to underwhelm investors.

"The realisation of the mountain to scale and some disappointment that a Twitter outsider hasn't been brought in to offer fresh ideas, is likely to be behind the loss of initial gains."

Mr Dorsey leaves a business he has repeatedly had to defend before Congressional committees, including relating to the company's controversial decision to ban Donald Trump in relation to comments he made regarding the 2020 US presidential election.

Earlier this year Mr Trump asked a federal judge to force Twitter to restore his account, which was shut down after his supporters attacked the US Capitol in January.