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Mon 21 Sep 2015 05:14 PM

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Saudi banks rebound after sell-off

Saudi banks had come under pressure due to concerns about their exposure to large construction firm Saudi Binladin Group

Saudi banks rebound after sell-off
(Getty Images)

Rebounding banking stocks lifted Saudi Arabia's market in early trade on Monday. Egypt's bourse was also positive in thin trade before an extended break.

The main Saudi stock index edged up 0.4 percent. Lenders Samba Financial Group, up 1.3 percent, and Al Rajhi Bank which rose 0.9 percent, were the main supports.

Saudi banks had come under pressure in the previous few sessions due to concerns about their exposure to large construction firm Saudi Binladin Group, which was suspended from taking new contracts after a crane accident in Makkah that killed 107 people.

The government has since sought to calm the market and said the company would be able to continue work on existing contracts.

Egypt's market edged up 0.2 percent with most stocks positive but volumes were very low ahead of the Eid al-Adha Muslim holiday which will see most markets in the region shut down from Wednesday.

Qalaa Holdings, one of Egypt's largest investment firms, was up 0.6 percent, gaving reported on Saturday a second-quarter net loss after tax and minority interests of 84.7 million Egyptian pounds ($10.82 million). That compares with a net loss of 178.6 million pounds in the same period last year.

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