JEDDAH: Banking stocks helped Saudi Arabia’s Tadawul All-Share Index (TASI) rebound from a 2-week low today after the government ended builder Binladin Group’s ban on bidding for state contracts.

National Commercial Bank and Al-Rajhi Bank were among the biggest gainers, rising 1.6 percent and 1.3 percent respectively.

“Binladin is a big borrower and worries about the company had been pressuring the banking sector,” Mazen Al-Sudairi of Riyadh-based Al-Istithmar Capital told Reuters. “There is less risk associated with Binladin now.”

The banking sector index, which represents about a third of the bourse’s total market capitalization, rose 1.3 percent.

Overall, the building and construction sector accounts for 7.9 percent of total lending among Saudi banks, central bank data shows.

TASI rose 1.1 percent, its first gain in six sessions trimming losses since hitting a 16-week high on April 25 to 3.1 percent.

The petrochemical sector, the bourse’s second-largest behind banking, was also supportive. It rose 2.4 percent as Brent crude oil jumped 3.5 percent to $46.16. Brent is up by nearly two thirds since January’s 12-year low.