Stepped-up activity by foreign investors caused Egypt's stock market to rebound on Monday following substantial losses the day before on the back of global market turbulence. The EGX30, Egypt's benchmark stock index, climbed 1.67 per cent to close out the day at 4,304 points. The broader EGX70, meanwhile, rose by 0.72 per cent. "The relative improvement in international markets has encouraged foreign investors to increase their activity in Egypt," capital markets expert Mostafa Badra told Ahram Online. European markets ticked higher on Monday as the euro bounced back from a ten-year low against the Japanese yen amid speculation that the European Central Bank might cut interest rates in an effort to ease concern over the ongoing euro zone debt crisis. US Stocks, meanwhile, also opened in the green on the back of hopes that measures recently adopted by European policymakers would help ease the region's debt problems. In Egypt, foreign investors accounted for more than 31 per cent of the day's total volume, with net buying standing at LE13.8 million. Local investors represented 60 per cent of total trade, net selling along with their Arab counterparts. Total trade volume, however, stood at a meagre LE269 million for the day, which Badra attributed to a reluctance on the part of institutions to inject sufficient funds into the market. "Given the rising yields of treasury bills, why would financial institutions invest in the highly volatile stock market?" he asked. Treasury yields have surged within the last six months to reach levels last seen in 2008, as banks continue to demand higher returns. According to Reuters, Egypt will need more than LE50 billion per month to finance its budget deficit, which is expected to reach more than 9 per cent of GDP. Individual investors are also hesitant to invest in the bourse, according to Badra. "Many people are currently holding losing positions," he said. "And they are unwilling to sell." Telecoms stocks led Monday's charge, with two market blue chips, Telecom Egypt and Orascom Telecom (OT), gaining 5.9 per cent and 4.32 per cent respectively. News circulated on Monday that OT's Bangladesh unit had received renewal guidelines for its 2G license following a year of talks with the Bangladeshi government. The subsidiary plans to pay 19.8 billion taka (roughly $263 million) over the coming three years for 15-year licence renewal fees. Large-cap telecom Mobinil, meanwhile, surged 2.99 per cent to close the day's trading at LE96.18. "Telecoms, a traditional favourite among foreigners, always lead the market," Badra noted. Out of 178 stocks traded today, 116 closed in the green while 52 registered losses. Other blue chips, such as Commercial International Bank, Talaat Mostafa Group and EFG Hermes, rose by 2.44, 3.48 and 2.51 per cent respectively. Market bellwether Orascom Construction Industries (OCI) was the leader in terms of activity, along with OT, with both realizing LE27.4 million in total trades.