CAIRO: Egyptian stocks bounced back on Tuesday from a nearly two-week downward streak, with Ezz Steel surging 7 percent on unconfirmed rumors of a possible capital increase, traders said.
Shares in Ezz Steel soared to LE 51.40 ($9.02), leading the market higher, with big cap stocks like Orascom Telecom and Orascom Construction Industries also gaining on buying from foreign institutional investors.
It was definitely (led by) Ezz Steel Rebars. There are rumors of a capital increase next week, said Mohamed Radwan of Delta Securities.
Ezz Steel officials were not immediately available for comment. Other traders said additional rumors, including of a possible increase in steel prices, were also driving the stock.
Overall, the benchmark Hermes index gained 1.7 percent to end at 57,975.47 points, and the widely watched Case 30 rose 1.5 percent to 6,640.63 points.
The broader CIBC-100 index added 1.2 percent to close at 276.44 points.
Shares in Orascom Telecom rose 0.6 percent to 382.50 pounds and shares in OCI rose 3.7 percent to end at 259.90 pounds.
Shares in investment bank EFG-Hermes, a favorite among retail investors, continued to drop. The shares lost 1.3 percent to LE 33.58.
