FTSE reshuffle demotes Persimmon

The slowdown in the housing market has affected Persimmon

Housebuilder Persimmon is to exit the FTSE 100, along with Alliance & Leicester bank, after the latest recalculation of the main share index.

Home Retail Group, which owns Argos, is also dropping into the FTSE 250, as is sugar producer Tate & Lyle.

Power station owner Drax Group, resources firms Petrofac and Ferrexpo, and software firm Invensys will replace them in the index of leading shares.

The reshuffle reflects the recent rise in oil and commodity prices.

The changes will come into effect on 23 June.