Rebounding oil prices and global stocks boosting sentiment across the Gulf regions, with Saudi, Dubai and Abu Dhabi benchmarks closing in positive territory. Dubai's index rose 1.5 percent to 1,648 points. Abu Dhabi's benchmark climbed 1 percent to 2,691 points. Saudi Arabia's measure rose 0.22 percent to 6,256.48 points. Oman's index fell 0.5 percent to 6,483 points. Kuwait's index edged up 0.02 percent to 7,016 points. Bahrain's index slipped 0.1 percent to 1,484 points. Oil's rise helped Saudi Basic Industries Corp add 0.9 percent, with the index advancing for a second day in three. “Saudi has outperformed global and emerging markets,” said a Riyadh-based analyst who asked not to be identified. Abu Dhabi Commercial Bank was the UAE's standout performer, rising 7.6 percent and taking its gains to 40 percent since plunging to a 7-1/2 year intraday low last week. The lender had reported a $327mn quarterly loss, but investors are now reacting positively to its attempt to clean up its balance sheet and follows similar moves by Saudi lenders. “In the past, ADCB's management strategy was very aggressive and it had a lot international exposure,” said Germaine Benyamin, an analyst at HC brokerage in Dubai.“But the bank has booked huge provisions during the last quarter, instead of spreading them out over the course of the following year, which will benefit the bank in the long run.” ADCB's surge helped Abu Dhabi's index rise to a two-week high in its fifth straight gain. Dubai's index rose as Emirates NBD jumped 4.6 percent, after closing at a life-low on Sunday on concerns about its exposure to indebted Dubai firms. “UAE banks are taking huge provisions and the expectations are for Emirates NBD to do the same, which is weighing on the stock,” said Benyamin. “The bank's balance sheet is overstretched, but if it does the same as ADCB to show it will be more conservative in the future, then this could be positive for the stock.” Regional markets may be in better shape than last month, but most analysts forecast the trend to remain sideways, with insufficient volumes to spark a more sustained rebound. “I don't see more liquidity coming back into the market - the main reason the market is at a standstill is because of a lack of liquidity”, said Ahmed Hamdi of Prime Emirates. National Bank of Kuwait added 1.8 percent, climbing for a second day since the lender reported a four-fold rise in quarterly profit, but the index was flat. Oil prices soared Tuesday, extending strong day-earlier gains as the market appeared more optimistic about global economic growth and energy demand. New York's main futures contract, light sweet crude for delivery in March, vaulted $2.80 to close at $77.23 a barrel. The benchmark contract already had added $1.54 Monday, after falling about $10 since mid-January. Brent North Sea crude for March surged $2.95 to settle at $76.06 a barrel.
