The main index EGX30 on Tuesday gained 1.08 percent recording 5,386.76 points, reducing its loss in the last three sessions.
Egyptian stocks have accumulated losses since 14 August after deadly violence erupted nationwide followed by police attempts to disperse sit-ins by supporters of ousted president Mohamed Morsi.
Investors sheered up over the news of arrest of the Muslim Brotherhood Supreme Guide of Mohamed Badie early on Tuesday.
Domestic investors were the only net buyers in the session, recording a net flow of LE79.21 million, while foreigners and Arabs ended the day as net sellers.
Bourse management has restored normal daily trading hours on Tuesday, which lasts daily from 10.30am to 2.30pm CLT after suspending Thursday's session and reducing trading hours on Sunday and Monday.
Market bellwethers Orascom Telecom Holding (OT) and Commercial International Bank (CIB) gained1.16 and 1.10 percent, respectively.
The markets heavyweight Telecom Egypt gained 0.16 percent.
Property shares Palm Hills Development (PHD) and Six of October Development and Investment (SODIC) climbed 2.56 and 1.27 percent, respectively.
"The market is affected by the political events which make it hard to predict its performance in the coming days," Ashraf Abdel-Aziz, head of institutional sales at the Cairo-based Arabia Online Securities, told Ahram Online. "The events in the coming few hours will affect tomorrow's session," he added.
The broader index EGX70 rose 2.0.2 percent.