The downward drift of new economy shares since quarterly changes to the composition of the FTSE 100 were approved on March 8 is in stark contrast to the share price performance of the companies relegated from the index.

Allied Domecq is the best performer of the relegated shares, adding 30% to its share price. Its ranking by capitalisation at the close of business on Friday was higher than seven of the nine new entrants to the FTSE 100. All the relegated companies show positive gains while all the promoted companies have fallen considerably. Shares, for example, in Thus, a supplier of internet, data and telecom services in the UK and the Netherlands, have slumped by as much as 40%.