The Lahore Stock Exchange was a financial facility located in

Lahore Lahore ( ; pnb, ; ur, ) is the second most populous city in Pakistan after Karachi and 26th most populous city in the world, with a population of over 13 million. It is the capital of the province of Punjab where it is the largest city ...

Pakistan Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a population of almost 24 ...

. It was incorporated as a company Limited by Guarantee under the Companies Act 1913 on 5 October 1970. In the first General meeting of the Board of Directors held on the same day, it was decided that the Exchange will commence its working by December 1970. It was the third Exchange in the country after Karachi and Dacca. The 1st Registered office of Lahore Stock Exchange (G) Limited was located at 17-Bank Square, Lahore. The purpose of establishing the Exchange was that the Province of Punjab with predominant middle class should have new avenues for investment and lay special emphasis on small and medium industries. The largest number of medium industries and business houses were located in Punjab; therefore many entrepreneurs with small industries in Punjab wished to build their industries broad based by converting them into public limited companies. Large agricultural wealth was also available to the people of the Punjab who constituted 62% of West Pakistan’s population and that wealth had to be geared for investment. The institution was established to facilitate the investors of Punjab and Northern areas by providing them an access to the Capital Market and enable them to take part in the progress of the Corporate Sector of the country. Ever since, the institution has served the cause of investing in small and large numbers, also providing the services and market place not only in Lahore but also beyond the city’s boundaries.

History

The Lahore Stock Exchange was established in October 1970, under the ''Securities and Exchange Ordinance, 1969'' by the

Government of Pakistan The Government of Pakistan ( ur, , translit=hakúmat-e pákistán) abbreviated as GoP, is a federal government established by the Constitution of Pakistan as a constituted governing authority of the four provinces, two autonomous territorie ...

in response to the needs for the provincial capital of

Punjab Punjab (; Punjabi: پنجاب ; ਪੰਜਾਬ ; ; also romanised as ''Panjāb'' or ''Panj-Āb'') is a geopolitical, cultural, and historical region in South Asia, specifically in the northern part of the Indian subcontinent, comprising ...

. It initially had 83 companies listed and was headquartered at Bank Square in

. The number of listed companies increased to 519 since its inception. The LSE has a total capital of with a market capitalization of . The Lahore Stock Exchange opened branches in the industrial cities of

Faisalabad Faisalabad (; Punjabi/ ur, , ; ), formerly known as Lyallpur (Punjabi, Urdu: لائل پور), named after the founder of the city, but was renamed in 1977 in honour of late King Faisal of Saudi Arabia. It is the 3rd largest city of Pakis ...

and

Sialkot Sialkot ( ur, ) is a city located in Punjab, Pakistan. It is the capital of Sialkot District and the 13th most populous city in Pakistan. The boundaries of Sialkot are joined with Jammu (the winter capital of Indian administered Jammu and Ka ...

for trading. The Sialkot branch is referred to as the

Sialkot Trading Floor The Lahore Stock Exchange was a financial facility located in Lahore, Pakistan. It was incorporated as a company Limited by Guarantee under the Companies Act 1913 on 5 October 1970. In the first General meeting of the Board of Directors held on ...

. With effect from 11 January 2016, the Lahore Stock Exchange was integrated with the Karachi Stock Exchange and Islamabad Stock Exchange under the ''Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012'' to form the Pakistan Stock Exchange.

LSE-25

LSE-25: The Lahore Stock Exchange Twenty Five company index calculates the performance of stocks assuming that all rights issues and

bonus share Bonus shares are shares distributed by a company to its current shareholders as fully paid shares free of charge. *to capitalise a part of the company's retained earnings *for conversion of its share premium account, or *distribution of treasu ...

issues only increase the listed capital so that the prices of the shares are not adjusted as they are in the case of the LSETRI. The LSE25 also assumes that

dividend A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-i ...

s 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.

LSETRI

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.

References

External links

* Former stock exchanges in Pakistan Economy of Lahore Pakistan Stock Exchange Pakistani companies established in 1970 Financial services companies established in 1970 {{stockexchange-stub

History

LSE-25

LSETRI

See also

References

External links