GAZA, Feb 3 (Reuters) - Hundreds of Palestinians waving Egyptian flags demonstrated in Gaza on Thursday in favour of the rallies against President Hosni Mubarak, in the first display of public support permitted by the enclave's Islamist ruler, Hamas.

Hamas would like to see a new government installed in Cairo that included its political ally, the Muslim Brotherhood. But it banned any gatherings earlier in the week while it waited to see how the crisis in Egypt would go.

The rally was held in front of the abandoned Egyptian mission in Gaza city. The mission quit Gaza in 2007 after Hamas ousted forces loyal to Palestinian President Mahmoud Abbas of the rival Fatah movement, a longtime ally of Mubarak.

Mubarak is a traitor, the crowd chanted.

Hamas keeps tight control of political rallies. Efforts by women in favour of the Egyptian revolt were warned off by Hamas police earlier this week when they tried to start a Facebook campaign in support of the anti-Mubarak movement.

Palestinian police in the West Bank, which is controlled by Abbas, dispersed dozens of anti-Mubarak demonstrators in Ramallah late on Wednesday. Two people were hurt. (Reporting by Nidal al-Mughrabi; writing by Douglas Hamilton; editing by Mark Heinrich)