Property firm demoted from FTSE 100

Property firm demoted from FTSE 100

Housebuilder the Berkeley Group has been knocked out the FTSE 100, meeting analyst expectations, demonstrating the turmoil faced by the property sector following the referendum.

In the latest quarterly review of the UK’s biggest 100 companies, the London Stock Exchange confirmed the housebuilding company Berkeley has been relegated from the index.

This confirms expectations from Share Centre investment research analyst Helal Miah who said it looks likely property companies could be shown the door in the first reshuffle since the referendum.

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Berkeley is among the latest victims of the Brexit vote after its share price suffered a 30 per cent hit due to concerns over falling demand for property.

The company has been replaced by precious metals mining firm Polymetal International, which Mr Miah also predicted would be a new entrant to the FTSE.

Companies on the FTSE 100 reserve list, which are used if FTSE companies have to take corporate action, now include the likes of Aberdeen Asset Management and the Baillie Gifford-owned Scottish Mortgage Investment trust.

Other names on the reserve list include software business Micro Focus International, packaging firm Smurfit Kappa, chemical manufacturer Croda International and environment tech group Halma.