Housebuilder Berkeley is set to fall out of the FTSE 100

LONDON housebuilder Berkeley group is on the brink of dropping out of the FTSE100 list of the UK’s leading companies and gold miner Polymetal is set to take its place.

The London Stock Exchange will this week shuffle the membership of the blue-chip index for the first time since the vote to leave the European Union.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: ‘The share prices of the housebuilders have been hit hard by Brexit, and Berkeley in particular has suffered because of its exposure to the London property market, so it is now teetering on the brink of expulsion from the FTSE100.

‘There has been much speculation that the referendum result will damage the UK housing market, though there are supportive factors at play too, such as low mortgage rates and government schemes such as Help to Buy.’

Microchip maker ARM may also be removed from the index this week because it is in the process of being bought by Japanese firm Softbank. ARM shareholders are expected to approve the deal on Tuesday.

Polymetal’s shares have soared almost 30 per cent since June 23, helped both by a weaker pound and by a surge in the gold price since Brexit. The company has gold and silver mines in Russia and Kazakhstan.

Chemicals giant Croda could also be promoted when the London Stock Exchange carries out its quarterly review this week.

Croda shares have jumped more than 10 per cent since the referendum amid much speculation that it could be a takeover target for foreign buyers looking for bargains.

Its products are used in antiageing creams and as additives for fungicides.