Logica and ARM fall from FTSE 100

LONDON, England -- The troubled technology sector suffered another setback on Wednesday when big name companies dropped out of the FTSE 100 in its quarterly reshuffle.

Computer services group Logica and chip designer ARM Holdings are being booted out of the prestigious FTSE 100 Index, after seeing their shares slump in the continuing sell-off of tech shares.

Industrial distributor Electrocomponents has also been pushed out.

The relegation marks a resurgence in so-called "old economy" stocks including newly listed mining company Xstrata, precious metals and industrial materials company Johnson Matthey and paper and plastics firm Bunzl.

The demotions continue the exodus of 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 group 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 Wednesday's demotions leave just group Sage as a representative.

The second-tier FTSE 250 Index will see a similar shake out -- with once-mighty telecoms firm Marconi and cable group Telewest Communications suffering the embarrassment of being relegated to the smallcap index.

Psion, which used to concentrate on palmtop computers but now focuses on its mobile phone joint venture Symbian, is also being relegated, as is London Bridge Software and healthcare business Medisys.

The changes, announced by FTSE Group, are based on share prices of the companies at Tuesday's close and come into effect on Monday June 24.