Egypt's stock market rose 0.71 per cent on Monday in a slow trading session, pushed by growth in leading shares in the basic resources and real estate sectors.

EGX30 index, the Bourse's main benchmark, gained 39 points to reach the 5,550 level -- a major resistance point.

"The index is currently at a significant level; that’s why we see stagnation in the market," says Omar Darwish senior equity trader at CI Capital.

Darwish explained that at the current level, it is difficult to predict any near-future market movement as investors trade cautiously.

The broader EGX70 witnessed a slight decline of 0.05 per cent.

All but two sectors finished in the green; basic resources, tourism and real estate were the highest gainers at 4.97 per cent, 3.29 per cent and 2.24 per cent respectively.

Basic resources gains were driven by steel shares, mainly Ezz Steel, which grew a striking 5.72 per cent. "Steel stocks were severely hit in the period following Jan 25th, now they are recovering," Darwish says.

Palm Hills stock was the highest traded in today's session at LE44.8 million and gaining 5.6 per cent in value. Talaat Mostafa Group also rose 1.71 per cent.

"The market hopes that resolutions on disputed lands, similar to the recent one between the government and Al-Waleed Ibn Talal, will be concluded with real estate developers," explains Darwish.

Al-Waleed bin Talal signed an agreement with the Egyptian government last week reworking the status of disputed land he bought in Toshka, Upper Egypt.

The surge in Palm Hills and Ezz stocks is part of a weeklong trend of recovery following the three-months slump the two securities witnessed after 25 January. The attractiveness of their current price levels fuelled positive trading patterns in the past week, unprecedented since the market reopened in March.

Tourism sector gains were propelled by a rise in Egyptian for Tourism Resorts which finished up 4.85 per cent on the back of Q1 profit growth announced on Thursday.

The four-hour session was dominated by Egyptians who comprised 81 per cent of the LE572 million volume and were net-buyers. Foreigner participation, on the other hand, declined to 13.7 per cent after it came close to 40 per cent last week.

"This is the average foreigners' trading levels; what we witnessed last week was just a result of ownership transfer deals," Darwish says.