HOUSEBUILDER Persimmon looks set to lose its place in the FTSE 100 share index in the next quarterly reshuffle.
The York firm, which last week announced plans to cut "several hundred" jobs, has seen its share price slide in recent months as it suffers from the dual impact of the housing market slowdown and mortgage market problems.
Lender Alliance & Leices
ter also looks set to lose its place in the index.
The two firms are are likely to be replaced by foreign miner Ferrexpo and engineering and technology group Invensys.
The promotion of Ferrexpo would continue the domination of the FTSE 100 by mining stocks, which have seen their share price surge in recent months on the back of soaring commodity prices.
Persimmon, which owns Charles Church, has seen the value of its shares more than halve during the past year, falling from more than 900p to just 447.25p on Friday, giving it a market capitalisation of £1.39bn.
The planned job cuts will be felt across Britain but the firm insisted no regional offices will close. Persimmon has begun a consultation with staff. It currently employs more than 4,500 people.
In April the firm said it was putting new projects on hold due to current market conditions, adding that revenues were 24 per cent lower so far this year, with lower sales volumes and higher cancellation rates.
The slide in Alliance & Leicester's share price has been even more dramatic as it continues to suffer from the fallout of the credit crunch.
Shares in the bank closed at 377.25p on Friday, down from a 12-month high of £11.61, giving the group a market capitalisation of £1.68bn.
The reshuffle will be worked out on companies' closing share prices on Tuesday, with the changes taking place at the end of trading on Friday June 20.
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