Egypt’s stock market finished Sunday at 2.52 per cent - the second highest value recorded since the revolution - in what analysts see as a result of relative political stability and the new economic packages offered by G8 countries.

The EGX30, Egypt's bench stock index, climbed to 5,548.06.

"There's a high wave of optimism among investors due to the relative stability Egypt is witnessing, as well as the new aid packages offered by international donors" says Walaa Hazem, asset manager at HC Securities. "Yet, you cannot count on this upward trend in the market unless you have an elected government reflecting real political stability" she warned.

On Friday G8 leaders meeting in the French resort of Deauville promised $20bn in loans and aid to Tunisia and Egypt over the next two years to support their democratisation process.

The package followed an earlier one announced by Saudi Arabia, which has on Saturday pledged $4 billion in aid.

Meanwhile the World Bank promised $4.5 billion, of which $1bn is to finance this year’s budget and another US$1 billion will help with next year’s.

As a result, of 184 listed stocks, 164 gained and 16 declined in LE 727,304 million ($125 million) worth in stock trades, with all sectors ending on a green note.

Real estate showed the most gains, recording an increase of 5.78 per cent, with the sector's heavyweights, Talaat Mostafa Group (TMG) and Palm Hills Development (PHD) listed as top gainers and increasing by 7.45 per cent and 7.37 per cent respectively - almost double Thursday's figures of 4.24 per cent and 2.84 per cent increases.

According to Hazem, there are two reasons for TMG & PHD gains - despite being under heavy attack for land-grabbing and corruption.

"First, their shares are very cheap and, thus, attractive for investors. Second, a settlement is likely to be finalised soon on the land disputes, and that makes them seem more trustworthy" he says.

A new law that would shield investors from prosecution for illegal land purchases from previous governments is being studied.

An Egyptian court ruled last month that the sale of state land to PHD, the country's second-biggest listed developer, was illegal and scrapped the contract. Talaat Moustafa is facing a similar legal challenge to a 33 million-square-meter plot of land it bought for its Madinaty project because it didn't do so through a public auction.

The cases hinge on conflicting laws governing state land deals. The original court ruling said a housing ministry body sold land to TMG in violation of a 1998 law. The government claimed it adhered to legislation which preceded that law.

Unlike yesterday, foreigners were net-buyers making up to 18.4 per cent of the market of LE99.3 million, while Egyptians and Arabs were net-sellers with LE 72.7 million ($12.5 million) and LE 26.5 million ($4.55 million) respectively.

"Today, foreigners are active buyers," says Ahmed Ibrahim, head trader with Premier Securities. "Those who exited the market on fears of turmoil caused by the Second Friday of Rage have returned after they regained their trust in Egypt, as no violence was recorded."