Luxembourg Stock Price Index 

The Luxembourg Stock Exchange 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 of 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 stocks have been eligible for inclusion. 

No explicit use is made of such criteria as market capitalization or trading volume except for the fact 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. De-listed stocks are withdrawn from the index.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.

 
Luxembourg Stock Price Index, Bourse de Luxembourg (Luxembourg Stock Exchange). Text: Institute for Advanced Studies, Vienna, 1998. All rights reserved.
 

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