FTSE ousts Freeserve from top index

UPDATE: ISP's latest humiliation: it is no longer one of the top 100 companies

UK Internet service provider Freeserve (quote: FRE) is no longer one of the UK's top 100 companies and will be kicked out of the FTSE 100 index Monday, the victim of sliding tech share prices.

The move will not come as a great surprise: Freeserve's share price has been hit hard by recent events in hi-tech stocks and now has a market capitalisation of about £1.6bn. That compares to a peak value of £10.1bn, just a few months ago.

The FTSE actuaries committee meets quarterly to review the constituents of the top index, removing those whose market value has ranked them below the top 120 companies on the FTSE. Freeserve and other tech companies will move down to the FTSE 250 index. Freeserve was pushed out amid demergers of two large companies, P&O and BG Group, which created two additional companies large enough to be in the top 100 index.

Other high-tech startups hit by the downturn include QXL, yesterday worth £117.1m compared to a peak of £3.47bn; 365 Corporation, down to £119.7m from a peak of £603.4m; and Lastminute.com, down to £217.1m from £801.8m.

In mid-day trading Friday Freeserve shares were down 5p, or three percent, despite a market recovering after strong earnings from Microsoft, Nokia and others.

Take me to ZDNet's Q3 Earnings Roundup.

Steven Vaughan-Nichols says he doesn't know much about tech stocks but he thinks it must be time to start looking at long-term stock values. Having had our day-trade, instant-millionaire party; we've had the hangover. Now, it's time to drink the coffee and get on with investing for long-term value and gain. Go to AnchorDesk UK for the news comment.

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