CAIRO: Investors feeling more optimistic about the political environment in Egypt pushed its main index higher, traders said.
The index gained 0.8 percent, extending a rally this year that has taken it up 28 percent after a disastrous 2011.
"Foreign buyers are now interested to invest in the Egyptian market, especially after the elections to parliament ended well, which made them feel good about progress in the political system," said Ahmed Khalil, a trader at Cairo Capital Securities.
Khalil said concern about the potential effect of ongoing street protests in Cairo on Egypt’s stability was receding.
"Buyers no longer care about the small daily protests as they see them as a regular phenomenon at this stage in Egypt. But they are closely watching the developments of the state’s different institutions and the democratic process," Khalil said.
"And for many westerners, having an established elected parliament is a major step forward," he added.
Other analysts have a more cautious take on the Egyptian market’s sharp gains this year.
They say local investors who are unable to shift large amounts of money out of Egypt to safer locations have been buying local equities as one of the more viable remaining alternatives.
Ezz Steel, which reported a leap in third-quarter net income on Tuesday, was the biggest gainer, up 3.7 percent.
Orascom Telecom Media and Technology rose 3.7 percent and real estate group Palm Hills gained 3.6 percent.
