Saudi shares closed 1.4 per cent higher on Saturday, lifted by gains in most sectors, on the first day of trading after the King Abdullah appointed Interior Minister Prince Nayef as the new crown prince.

The all-share closed at 6,236 points and the petrochemical sector added 2.4 per cent at 6,368 points. Heavyweight Saudi Basic Industries added 3.4 per cent. The banking sector also rose, adding one per cent to 14,469 points.

Telecom firm Zain Saudi closed 3.6 per cent higher after it announced on Wednesday that it plans to cut its capital.

Earlier in the day, the shares opened higher after Prince Nayef was named as the new crown prince. The all-share gained 1.16 per cent in early trading to hit 6,222 points and the petrochemical index gained 1.8 per cent to 6,333 points.-Reuters