MIDEAST STOCKS-Banks lift Abu Dhabi to fresh 54-month high; Gulf up

* Abu Dhabi bank valuations still attractive - Shuaa

* Higher turnover continues to attract money to Kuwait

* Banks, mid-caps drag down Saudi Arabia

* Bank Muscat up on hopes it may recover some fraud money

* Large-caps boost Cairo market

By Nadia Saleem

DUBAI, May 12 (Reuters) - Abu Dhabi's bourse rose to a fresh 54-month high on Sunday as banks extended gains, while strength in international markets bolstered sentiment on most regional bourses.

Abu Dhabi's First Gulf Bank FGB.AD rose 2.1 percent and National Bank of Abu Dhabi NBAD.AD added 1.6 percent. The banks are up 27.2 percent and 33.0 percent in 2013 respectively.

"Abu Dhabi banks are still attractive - there's no reason why they shouldn't be trading at similar levels to other regional banks," said Amer Khan, fund manager at Shuaa Asset Management, saying that in terms of price-to-book ratios, there was room for further gains.

Dubai's benchmark .DFMGI climbed 0.3 percent to a fresh 42-month high. Mid-caps led gains; Air Arabia AIRA.DU rose 2.8 percent and Dubai Islamic Bank DISB.DU added 2.1 percent.

Dubai Islamic has completed a share swap with mortgage lender Tamweel TAML.DU , in which it provided 10 new shares in the bank for every 18 of Tamweel's, according to a bourse statement on Sunday. Tamweel slipped 1.6 percent.

In Kuwait, the measure .KWSE advanced 0.8 percent to its highest finish since October 2009. Investors have been committing more cash to local stocks since a stand-off between parliament and the government abated following parliamentary elections in December.

"The increase in value traded should serve to induce more confidence in the market and add to the stimulants fuelling the rally," said Fouad Darwish, head of brokerage services at Global Investment House.

In Saudi Arabia, the index .TASI shed 0.4 percent, down from Saturday's four-week high. The banking sub-index .TBFSI dipped 0.4 percent, while investors booked recent gains in mid-caps; the retail index .TRESI fell 1.3 percent and insurance stocks .SINSI shed 1.1 percent.

Oman's benchmark .MSI added 0.2 percent. Large-cap Bank Muscat BMAO.OM rose 0.5 percent on hopes that the lender may recover some of the losses from a cyber bank heist, which cost it nearly $40 million in provisions; it said on Sunday that it was considering its options to recover the money. ID:nL2N0DR01V

Elsewhere, large-caps helped Egypt's bourse .EGX30 hit a 10-week high, advancing 0.8 percent. Telecom Egypt ETEL.CA and Commercial International Bank COMI.CA gained 1.6 and 1.1 percent respectively.

SUNDAY'S HIGHLIGHTS

ABU DHABI

* The index .ADI rose 1.1 percent to 3,404 points.

DUBAI

* The index .DFMGI gained 0.3 percent to 2,185 points.

KUWAIT

* The index .KWSE rose 0.8 percent to 7,828 points.

EGYPT

* The index .EGX30 gained 0.8 percent to 5,447 points.

QATAR

* The benchmark .QSI ended flat at 8,848 points.

OMAN