Berkeley Group has fallen from the FTSE 100 and drug company Circassia has dropped from the FTSE 250 to the small-cap index in FTSE Russell’s first quarterly review for the UK since the country vote to leave the European Union.
The large-cap index has now become more heavily dominated by international earners as precious metals producer Polymetal International joins the FTSE 100.
Berkeley Group, like other house builders, saw its share price pummelled following the Brexit vote. Trading in Berkeley Group was temporarily suspended in the week following Brexit and its share price plunged 35.9 per cent on the day the referendum result was announced.
Circassia, which is owned by star fund manager Neil Woodford, saw its share price drop 65 per cent in June after high-profile cat allergy vaccine was found to have almost the same effect as a placebo control in its stage-III trials.
UK motor dealer Pendragon also toppled out of the FTSE 250 and into the small-cap index.
Berkeley was replaced in the large-cap index by Polymetal International in the quarterly review.
Other winners from today’s review include online gambling company GVC Holdings, which joined the FTSE 250, alongside Hunting, a supplier to the oil and gas industry.
Rankings are based on market capitalisation at the close of markets on 30 August. They are applied after the close of markets on Friday 16 September.
Helal Miah, investment research analyst at The Share Centre, notes companies that were downgraded in the review tended to have high UK exposure, while those that were upgraded tended to have significant international earnings.
“The latest reshuffle goes some way towards making the FTSE 100 further biased towards international markets and less of a benchmark of UK Plc.
“If the status quo remains, then the next quarterly review could see the FTSE 100 further skewed.”