* Main index posts first gain since mass protests on Jan. 25
* Blue chips lead, most construction and property buck trend
(Updates with closer, adds quotes)
By Sherine El Madany
CAIRO, March 27 (Reuters) - Egypt's benchmark index .EGX30 snapped a four-day losing streak and closed 5.3 percent higher on Sunday, the third day of trade since political turmoil closed the bourse for more than seven weeks.
The index posted its biggest single-day gain since Dec. 13, 2009 and its first gain since mass protests erupted on Jan. 25 to oust President Hosni Mubarak, with jittery investors grabbing stocks they believed had become cheap, traders said.
"The panic has slowed down gradually ... and prices have fallen to attractive levels that prompted buying," said Hashem Ghoneim, vice chairman of Pyramids Capital.
Major stocks, including heavyweights Orascom Telecom (ORTE.CA), Orascom Construction (OCIC.CA) and Commercial International Bank (COMI.CA), jumped 10 percent by the market close.
Egypt's biggest listed firm Orascom Construction and Commercial International Bank posted their biggest one-day jump in years.
"People were expecting the worst and saw a bleak picture, but optimism returned to the market when the worst did not happen," Ghoneim added.
Trading volume was firm, traders said, and turnover reached 1.1 billion Egyptian pounds ($184.9 million). The EGX30 index closed at 5,212 points.
Some traders expect the market rally to continue on Monday until the main index reaches a resistance level of 5,300 points, that if sustained, could take the index as high as 5,650 points.
"Some blue chips will (resist) a market slowdown because their fundamentals and growing business operations will be supportive," said Mohamed Kotb, director of asset management at Naeem Brokerage.
BUYING APPETITE
Defensive telecoms stocks and dollar-denominated Maridive and Oil Services (MOIL.CA) helped the main index rebound from last week's 12.3 percent fall.
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