Shares in Gem Diamonds have risen 12.9% building on Friday's 20% gain, as investors react to a recovery in demand for rough diamonds with market conditions looking more positive, according to analysts, Reuters reported.



'They have just raised money and we know diamond prices are getting a bit better. The share was pretty depressed so it's not all that surprising it should bounce," said Desmond Kilalea, a diamond analyst at RBC Capital Markets, told Reuters.

African Minerals, which has diamond assets in Sierra Leone, also has support, rising by 14.6%.



"The whole diamond sector is becoming in demand. The ones that produce look like they're getting some attention because people now hear that rough diamond prices have been reasonably strong over the past couple of months," said Kilalea.