Two more technology companies are set to be ejected from the FTSE 100 index of leading London shares in its quarterly reshuffle this week, index compiler FTSE said yesterday.

Based on their market value at yesterday's close, software firm Logica and microchip designer ARM Holdings - ironically the index's star performer yesterday - along with electrical and industrial parts distributor Electrocomponents, are set for relegation.

They would follow the path twice trodden by former technology star Baltimore and, with the recent ejection of Marconi and Telewest, signals a comprehensive cull of technology stocks which once looked to be on their way to a formidable presence on the blue-chip index.

FTSE said the changes were subject to confirmation by a FTSE index committee today and would take effect from June 24th.

Based on last night's close, the three will be replaced in the blue-chip index by metals and chemicals firm Johnson Matthey - one of the index's original constituents back in 1984 - food packaging and disposable products supplier Bunzl and mining and metals group Xstrata.

Each quarter the benchmark FTSE 100 stock index is rejigged to ensure it includes Britain's largest listed firms.

Companies outside the index that rise to be ranked among the largest 90 are automatically included in the quarterly review, while any member of the top 100 that falls to 111th spot or below drops out.

Logica was well below 111th at the close, but Electrocomponents and ARM hovered closer to the pivotal spot. ARM moved up to 111th as its shares rallied 6.2 per cent yesterday.

Historically, share prices of companies that leave the Footsie tend to recover as the hedge funds and speculative traders which have been pushing them lower lose interest.

If confirmed, the changes will represent a fresh blow for "new economy" shares, leaving software company Sage Group as the only pure software or technology firm in the UK blue-chip index.