Travis Perkins and Polymetal lose out in FTSE 100 reshuffle
Building materials company Travis Perkins and precious metals group Polymetal International have been ejected from the FTSE 100 in the latest stock market reshuffle.
The FTSE Russell EMEA Committee confirmed on Wednesday that the two firms will be replaced by paper packaging company Smurfit Kappa, which has benefited from a surge in online shopping, and medical product and tech firm ConvaTec.
Companies listed on the UK stock market are reviewed four times a year and reshuffled among the indexes based on their market capitalisation, a measurement derived from the price of a company's shares.
The downgrade follows a significant slump in both Travis Perkins and Polymetal International shares in recent months.
Travis Perkins shares have fallen over 26% since the vote on June 23, having been hit by a general slowdown in the UK property market in the wake of the Brexit vote.
Polymetal International has been bumped from the blue chip index just months after being upgraded to the FTSE 100 back in September, following a drop in the gold price.
Gold prices have failed to gain momentum despite a small spike at the start of November when US election jitters sent investors running towards safe haven assets. Gold has dropped more than 12% since its mid-year peak in July.
Shares in Polymetal International have dropped nearly 37% since their mid-August peak.
The latest set of stock promotions and relegations are set to take effect on December 19.