Morrisons is reportedly in danger of relegation from the FTSE 100 list of the UK’s biggest companies.

The prestigious blue-chip index comes up for renewal this week (w/c 30 November), and according to City AM, Morrisons has been hovering near the bottom of the index over the last year, and narrowly avoided being kicked out in the last quarterly reshuffles in June and September.

Its share price has fallen by 15 per cent to 154.60p this year, giving the supermarket a market capitalisation of £3.6 billion, and placing it in 109th position on the London stock market, City AM reports.

Companies face demotion from the index if their value falls below that of the 110th largest company in the rankings. If a company is in the FTSE 250 and climbs into the top 90 companies, it can enter the FTSE 100.

The next quarterly review of the index takes place on Wednesday (2 December), with security firm G4S and aerospace firm Meggitt also reportedly likely to be demoted.

An exit from the FTSE 100 would also mean that Morrisons is no longer automatically included in tracker funds held by institutional investors.

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