Lahore Stock Exchange

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Lahore Stock Exchange (Guarantee) Limited is the second largest stock exchange after the Karachi Stock Exchange. It is located Lahore, Pakistan.

1 History
2 LSE Index
3 See also
4 External links

[edit] History

Lahore Stock Exchange (Guarantee) Limited came into existence in October 1970, under the Securities and Exchange Ordinance, 1969, of the Government of Pakistan in response to the needs of the provincial metropolis of the province of Punjab. It initially had 83 members and was housed in a rented building in the crowded area of Bank Square in Lahore. The number of members has increased from 83 to 152 over a period of 25 years.

Lahore Stock Exchange has opened branches in the industrial cities of Faisalabad and Sialkot for trading.

[edit] LSE Index

LSE-25: 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.