UK tech companies facing further setbacks

Technology companies in the UK face further problems today, after another wave of stocks are relegated in the FTSE’s quarterly reshuffle.

Computer services group Logica and chip designer ARM Holdings are set to be demoted from the prestigious FTSE 100 Index in today’s reshuffle, after seeing their shares slump in the continuing sell-off among tech shares.

Industrial distributor Electrocomponents is also expected to be pushed out.

Replacing the three are expected to be newly-listed mining company Xstrata, precious metals and industrial materials company Johnson Matthey and paper and plastics firm Bunzl.

The demotions continue the exodus seen among tech stocks which have been pushed out of the Footsie after the bursting of the tech bubble.

Former Footsie stars include the now-troubled telecoms groups Marconi and Energis, while others which have been relegated include Colt Telecom and Kingston Communications.

Among tech stocks which have fallen out of the index are software group Autonomy and Misys, and today’s demotions will leave just group Sage as a representative.