Marks and Spencer to be relegated from FTSE 100
Micro Focus and Direct Line also demoted from top tier of UK-listed companies after share price plunges
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Your support makes all the difference.Marks & Spencer is to be demoted from the FTSE 100 for the first time since the index was created 35 years ago after its value fell below the threshold for inclusion in the top tier of UK-listed businesses.
The relegation was confirmed at the end of trading on Tuesday by stock closing prices, which dictate the quarterly reshuffle of the blue-chip cohort.
An official announcement will be made on Wednesday and changes will take effect on 23 September.
Micro Focus and Direct Line also found themselves relegated as part of the shake-up, making room for mining company Polymetal, pharmaceutical business Hikma, and engineering firm Meggitt.
M&S had been near-certain to get the boot after a decline in its share price of more than 45 per cent over the last three years.
It is one of the founder members of the 1984 FTSE 100 cohort, and the company's demotion leaves just 26 of the original line-up still on the index.
Helal Miah, investment research analyst at the Share Centre, said: "M&S for many generations has been a stalwart of the UK retail market and a founding member of the FTSE 100.
"Its relegation will be highly symbolic of the troubles on the UK high street and the challenges the UK retail sector faces as the internet plays an increasingly important role."
Companies which have narrowly avoided dropping out this time round include British Gas owner Centrica, which looked close to the edge last week but recovered slightly.
It was also aided by the fact that Micro Focus issued a profit warning last week, making the software giant a prime candidate for demotion.
M&S may not be the last retail stalwart to find itself in the FTSE 250, with Sainsbury's, Morrisons and B&Q owner Kingfisher all set to be contenders for relegation in the next reshuffle.
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