Lahore Stock Exchange Indicies
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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