Egypt's benchmark stock index fell for the second consecutive day on Thursday, sliding almost four per cent but paring steeper losses earlier in the session as investors looked to unload holdings after nearly two months of t he market's closure.

Nevertheless, a small decline is good news for many. "It's a happy day for Egypt's bourse," says financial analyst Hanafy Awad. "High transactions, balanced buying and selling, and no panic."

The bourse recorded today a huge total equities turnover of LE1.88 billion . EFG-Hermes issued a statement saying that transaction levels are very attractive and there are a lot of opportunities of buying now.

"The announcement of the referendum results has provided a clear roadmap for the Egyptian political arena, paving the way for political as well as economic stability," Awad added. "Also, yesterday's decree banning demonstrations has eased anxiety over Egypt amongst foreign investors."

Yesterday, the Egyptian cabinet approved a decree that criminalises protests, demonstrations and sit-ins that interrupt private or state owned businesses or affect the economy in any way.

Unlike yesterday, foreigners were heavily present, recording 75 per cent of equities transactions with a LE1.4 billion value of sells and LE1.3 billion in buys. Egyptian investors were more cautious and continued to buy more than they sell.

Yesterday, bourse Chairman Abdel-Salam told Ahram Online that foreign investors had practically no impact on Wednesday's market. Sigma Securities figures showed they were involved in 7.7 per cent of transactions.

"Foreigners active presence today was due to the resumption of the stock's biggest companies, which foreigners are interested in, including Ezz Steel and CIB (the Commercial International Bank)," Awad explained. "While yesterday, around 46 companies were suspended from trading because they didn’t meet disclosure rules."

Egypt's Ezz Steel shares resumed trading at 10:30 GMT after the stock was suspended Wednesday until its ownership and financial position was clarified.

Telecommunications (up 5.9 per cent), chemicals (up 0.66 per cent) and construction (up 7.3 per cent) recorded a raise from yesterday's session due to yesterday's sharp decline due to corruption charged faced by some company owners in these sectors.

Orascom Construction, owned by Egyptian tycoon Naguib Sawiris, rose 0.08 per cent while Sinai Cement rose 9.9 per cent.

Orascom Telecom and Mobinil were prominent gainers in the telecommunications sector with 9.9 per cent and 3.8 per cent rises respectively.

In the real estate sector, iPalm Hills and Sodic recorded a 10 per cent loss.

Earlier in the morning, trading in the Egyptian stock market was suspended after recording a sharp decline of 6.76 per cent, before resuming again after half an hour. "Yesterday and today's morning panic is natural as traders were hitting the market impatiently," Awad said. "But when things went well; everyone was back to normal."

According to temporary trade measures introduced by the Egyptian Financial Supervisory Authority (EFSA) to curb losses likely to be recorded by the bourse following a two-month layoff due to political turmoil, trading on stocks will be carried within a pre-set price range, to be halted for a half hour in case of a five per cent change in value.

The market had witnessed yesterday a sharp dip as trading restarted, losing a total of $6.2 billion in market value, with the EGX30, the main stock index, falling 8.92 per cent to 5,141 points after a three-hour trading session.