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