Luxembourg Stock Exchange

Index
Long name	Luxembourg Stock Price Index
Owner/publisher/sponsor	Luxembourg Stock Exchange
Number of constituents	13 domestic companies with business activity in Luxembourg
Construction principle	Capitalization-weighted value ratio
Base date/base value	January 2, 1985 / 1,000.00
Interval of calculation	Daily (closing)
Source: Luxembourg Stock Exchange, 1996.

The Luxembourg Stock Exchange (1996) publishes two stock indexes: The Luxembourg Stock Price Index and the Luxembourg Stock Return Index. There is no further division into sectoral indexes. Luxembourg-based companies are eligible for inclusion in the index sample if they are representative for the Luxembourg economy and with business activity in Luxembourg. Since out of the about 70 stocks listed on the stock exchange the vast majority are holdings or investment trusts with their main business activity pursued abroad, only 13 companies have been eligible for inclusion so far.

No explicit use is made of such criteria as market capitalization or trading volume except for that both figures should be sufficient to assure a reasonable degree of liquidity. Stocks are included in the index starting with the first day of public trading on the stock exchange. Delisted stocks are withdrawn from the index. Contrary to common practice that draws upon the last available price(s) for calculating the indexes in the case of suspensions from trading, the Luxembourg Stock Exchange temporarily withdraws the respective stock from the index sample.

The Price Index is adjusted for the usual set of transactions except for dividends, whereas the Return Index is adjusted for dividend payments by adding the dividends paid to the current market capitalization in conjunction with the method of splicing.

References:

Luxembourg Stock Exchange (1996): Luxembourg Stock Exchange Stock Indexes, mimeograph, Luxembourg.

DAX: German Stock Exchange, Frankfurt. Text: Institute for Advanced Studies, Vienna, 1996. All rights reserved.

This page is a part of the European Stock Market Indexes Website of the Institute for Advanced Studies in Vienna, Austria. Text by Christian Helmenstein. No part of this page or the European Stock Market Indexes Website may be reproduced, stored in a retrieval system, or transmitted without the prior permission of the copyrightholder(s), subject to the exceptions provided for by law. In any case, proper reference would run: "European Stock Market Indexes Website, Deutscher Aktienindex DAX, Institute for Advanced Studies, Vienna (http://www.ihs.ac.at/fin/finix/direct.html)." For further information on stock market index construction principles (NOT: data sources etc.) contact the IHS Financial Indicators Research Group. No liability assumed.

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