Effect of shares going ex-div on an Index

[theoryman]

The FTSE recent High is 5414 and yesterday it reached 5407.

My problem is that the day before the 5407 was reached, the FTSE effectively dropped >10 when a set of big dividend payers all went ex -div at the same time.

So was yesterday's High 5407 or effectively 5417 i.e. a higher High than the 5414.

In terms of non-failure of a wave, it is vital to know which figure is likely to be more valid.

cheers theory

[TS Hennessy]

(08-05-2010 02:20 AM)theoryman Wrote:  The FTSE recent High is 5414 and yesterday it reached 5407.

My problem is that the day before the 5407 was reached, the FTSE effectively dropped >10 when a set of big dividend payers all went ex -div at the same time.

So was yesterday's High 5407 or effectively 5417 i.e. a higher High than the 5414.

In terms of non-failure of a wave, it is vital to know which figure is likely to be more valid.

cheers theory

Normally I would think that the data should stand as is, TM. Today a
new high solves it but it is an interesting question.