Polymetal and Evraz drop out of FTSE 100

 
Suzie Neuwirth

THE FTSE 100 reshuffle takes effect from the end of today, with miners Polymetal International and Evraz dropping out of the index after their share prices were hit by declining commodities prices.

They will be replaced with building and home improvement retailer Travis Perkins and housebuilding company Persimmon.

Leaving the FTSE 100 alone is enough to adversely affect a stock’s price, as tracker funds which follow the index automatically stop investing in the companies.

The departure of Polymetal and Evraz is partly caused by the wider fall in mining stocks which analysts expect to continue.