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PSA Peugeot Citroen dropped from France's CAC 40 index

  • French car maker PSA Peugeot Citroen is to be dropped from France's CAC 40 blue chip index.

    Peugeot was a founding member of the CAC 40 benchmark index, created 25 years ago, but has been struggling with falling sales and a depreciating share price in recent years.

    The change will take place on September 24.

    Peugeot is to be replaced by Belgian chemicals firm Solvay.

    PSA Peugeot Citroen,Europe's second-largest car maker by volume, has recorded a 13 percent drop in sales in the first half of the year.

    Its share price has shed 61 percent of its value over the same period.

    Demotion from the index could result in a fall in the stock's liquidity as it may no longer be included in the baskets of shares bought by index-tracking and exchange-traded funds.