All but nine stocks on the benchmark index are higher.

The EGX30 fell 2 percent to its lowest close since May 19 on Wednesday.

Some residents had speculated that the clashes, which began late on Tuesday and left over 1,000 people hurt, could break out again on Wednesday evening at a football match between two Cairo based clubs.

“It was quite a fall yesterday,” said one Cairo-based equity analyst.

“Perhaps people are relieved that it didn’t kick off again yesterday after the Ahly-Zamalek game.”

Commercial Internation Bank accounts for most of the trading volume, rising 5.8 percent, while Pioneers Holding gained 6.4 percent. Private equity firm Citadel Capital is up 1.6 percent.

Qatar’s index reached a two-week high, with the gas exporter’s double-digit economic growth expected to enable stocks to outperform Gulf peers in the longer term.

Commercial Bank of Qatar climbs 1.8 percent, Doha Bank rises 1.2 percent and Qatar Gas Transport Co. (Nakilat) adds 0.8 percent.

Qatar’s index rises 0.3 percent to 8,355 points, its fourth straight gain and highest close since June 15.

“In terms of valuations, Qatar is trading in line with the rest of the GCC, but the country’s GDP forecast and strong confidence in the private sector indicate Qatar should be trading higher than current levels,” says Patrick Rahal, senior analyst at Doha-based investment company The First Investor. “We should be confident it will go up over the next 12 months.”

Qatar’s economy will grow 16.7 percent in 2011 according to a June Reuters poll.

Banks helped Qatar’s index rise as some investors build positions ahead of second-quarter results season, which is due to start next week.

Qatar National Bank climbed 0.8 percent, Commercial Bank of Qatar rose 0.9 percent and Qatar Islamic Bank added 0.4 percent.

“Investors are optimistic about Q2 results and stocks are at a perfect buying point, but there isn’t the liquidity to create a clear trend and so the market will trade sideways until after Ramadan,” says Hani Girgis, assistant chief dealer at Dlala brokerage.

Steady oil prices over the past three months will help support Q2 earnings for select stocks, Girgis says. These will likely include chemicals producer Industries Qatar

Investors will rotate liquidity into banks — usually the first sector to report earnings - then industrials such as IQ and Qatar National Cement (QNC), lastly focusing on service sector stocks such as Qatar Gas Transport Co. (Nakilat).

IQ rose 0.4 percent and Nakilat added 0.8 percent, but QNC fell 0.4 percent.

The index climbed 0.4 percent to 8,366 points, hitting a two-week high and trimming its 2011 losses to 3.7 percent.

The benchmark will trade between 8,050 and 8,500 for at least the next two months, Girgis adds, with market activity likely to remain lackluster as traders and investors go abroad to escape the searing summer heat.