RIYADH (Zawya Dow Jones)--Saudi Arabia's Kingdom Holding Co.,
run by the billionaire Prince Alwaleed bin Talal, said Saturday its
portfolio increased 978 million Saudi riyals ($260.8 million) in
August, driven by the rise in Citigroup Inc. (C) and News Corp.
(NWSA) shares last month.
The conglomerate's available-for-sale investments increased 20%
to SAR5.87 billion Saudi riyals at the end of August, adding to its
8.7% monthly rise in July as global markets continued a summer
rally.
Unrealized losses decreased to SAR15.6 billion at the end of
August from SAR16.6 billion at the end of July, Kingdom Holding
said in a statement on the Saudi bourse Web site.
The conglomerate derives much of its income from investments in
global equities. Kingdom has a 5% stake in Citigroup, as well as
shares in Apple Inc. (AAPL); News Corp., owner of Dow Jones
Newswires, publisher of this report; Time Warner Inc. (TWX); and
eBay Inc. (EBAY). It also owns 58.1% of Fairmont Raffles and a 47%
stake in Four Seasons.
The company attributed the rise in its portfolio to "the
improvement in Citigroup share price aggregating 83% and to News
Corp. aggregating 9% and 8% for the balance of the shares," Kingdom
Holding said in an emailed statement.
Prince Alwaleed, who owns 95% of Kingdom Holding, took a major
hit last year as his investments on Wall Street around the world
plummeted. The company posted a net loss of SAR29.7 billion in
2008, one of the largest corporate losses in Saudi's history.
"We are pleased by the recovery in the global economy and its
favorable impact on Kingdom Holding Company," Prince Alwaleed said
in an emailed statement.
Since February, the conglomerate's available for sale
investments rose SAR2.5 billion since February, a 75% increase, the
prince added.
Kingdom Holding's net profit plunged 83% to SAR92.1 million in
the second quarter of the year, compared with a year earlier.
Kingdom said the decline was due to lower dividend payments on its
investments and a drop in operating profits from the hotels it owns
and manages.
The company's shares closed Saturday down 2.3% at SAR4.50 in a
broadly positive market.
-By Mohammed Aly Sergie, Dow Jones Newswires, +96655-6221334,
Mohammed.Sergie@dowjones.com