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LSE25: The Lahore Stock Exchange Twenty Five company index also
calculates the performance of stocks assuming that all rights issues and bonus
share issues only increase the listed capital. In the case of bonuses or rights
the prices of the shares are not adjusted as they are in the case of the
LSETRI. However, the LSE25 assumes that dividends paid out by
a component company are not reinvested. In summary, in the LSE25,
no price adjustments are made when any component company issues cash dividends.
The Lahore Stock Exchange Total Return Index calculates the
performance of stocks assuming that all payouts are reinvested in the index on
the ex-date. The LSETRI assumes that if a component company
issues bonus shares or announces a rights issue it will increase the listed
capital. Additionally, the LSETRI also assumes that all
pay-outs by a component company are 100% reinvested in the index. Therefore,
the LSETRI is adjusted against such payouts announced by any
of index constituents on its ex-date allowing the index value to remain
comparable over time.
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