Saudi Arabia's Tadawul All-Share Index (TASI) hits a six-week closing high, with small cap stocks attracting high volumes and foreign funds. Only three large-cap stocks gained among the top 10. The index closed 0.21 percent higher at 6,519.76 points on Sunday. The sector activity for the day was all positive except 3 losing sectors. The gaining sector ranged from 0.02 percent by the Telecommunication & Information Technology sector to 2.06 percent by the Media and Publishing sector. On the other hand the losing sectors were the Industrial Investment, the Petrochemical Industries and the Hotel & Tourism sectors with 0.04 percent, 0.14 percent and 1.94 percent. The overall market breadth for the day was positive with 100 advancers against 32 decliners giving it an AD ratio of 3.125, the Financial Transaction House (FTH) — licensed by the Capital Market Authority (CMA) — said in its daily market report.

The stock market turnover reached SR5.13 billion on Sunday.

Egypt's main index saw its highest one-day gain in over a year, rising more than 5 percent. Many stocks neared limit up, in a first session of gain since mass protests demanding President Hosni Mubarak be ousted erupted on Jan. 25. The benchmark index rose 5.3 percent to 5,212 points.

Major stocks, including index heavyweights Orascom Telecom, Orascom Construction and Commercial International Bank jumped 10 percent.

UAE investors, optimistic about first-quarter earnings, pushed Dubai's index to a five-week closing high, while Abu Dhabi's index rose for a fifth day in six. The Dubai index gained 0.2 percent to 1,556 points, while the Abu Dhabi benchmark climbed 0.5 percent to 2,646 points.

"There's been a re-rating in the UAE market, partially driven by strength in Saudi Arabia," Reuters quoted Walid Shihabi, Shuaa Securities chief executive, as saying.

"Price points have been pressured significantly...unfairly beaten down by regional trends," he said, adding that further upside is likely.

Analysts forecast sustained momentum in UAE markets ahead of the earnings season. Dubai's benchmark has risen 15.1 percent since hitting a six-year low on March 3.

UAE bank stocks gained after the country's central bank announced growth in bank credit.

National Bank of Abu Dhabi and Emirates NBD gained 0.4 and 0.3 percent respectively.

"Bank liquidity is improving and earnings will be supported by lower provisions this year, but there will still be asset deterioration in the corporate segment," said Sofia El Boury, Shuaa Capital assistant vice-president for research, adding that the real estate sector has lagged in recovery.

Qatar's index rose as foreign investors injected more funds in the Gulf. The index jumped 1 percent to 8,393 points.

Kuwait's index edged up, helped by Gulf Bank which added 2 percent. Telecoms operator Zain closed 1.5 percent lower. The index rose 0.01 percent to 6,286 points.

Oman's index bucked the regional upside trend and closed lower, which analysts attributed to profit-taking after a week of gains. The index fell 0.2 percent to 6,390 points.

The Bahraini measure rose 0.3 percent to 1,427 points, Reuters said.