Polymetal pushes housebuilder Berkeley out of UK's FTSE 100

* Brexit hurts shares of Berkeley and housebuilders

* GVC, Hunting (Other OTC: HNTIY - news) win promotion to FTSE 250

* Pendragon (LSE: PDG.L - news) , Circassia (Stuttgart: 23863607.SG - news) drop out of FTSE 250 (Adds detail, background)

By Sudip Kar-Gupta

LONDON, Aug 31 (Reuters) - Housebuilder Berkeley Group has lost its place in the blue-chip FTSE 100 equity index after its stock price dropped, partly because of Britain's vote to leave the European Union.

FTSE Russell, which handles changes to the index, said on Wednesday that Berkeley would be replaced by Russian gold and silver miner Polymetal, whose shares have surged as economic uncertainty has driven up the price of gold.

A company's place in the FTSE 100 index is decided on the basis of its share performance and stock market value. Companies with the lowest market capitalisation get replaced by mid-cap companies with higher market capitalisations.

Demotion can lower demand for a company's shares as funds that track the index drop that stock from their portfolios. Companies that win promotion can attract more interest from investors.

The relegation of Berkeley and its replacement by Polymetal further highlight how the FTSE 100 has become increasingly exposed to the global economy rather than the British economy.

Berkeley shares closed up 3 percent on Wednesday, but the stock remains down by around 30 percent since the start of 2016. In contrast, Polymetal shares - which fell 5.6 percent on Wednesday - have surged 80 percent so far in 2016.

Housebuilders such as Berkeley and its rivals have suffered since June's Brexit vote as the referendum result starts to hit demand for housing.

Data this week suggested the British economy was slowly starting to feel the effects of the vote to quit the EU, with a post-Brexit slump in sterling making consumers more wary about their spending habits.

Bank of England figures showed mortgage approvals for house purchases fell to 60,912 last month from 64,152 in June, the lowest since January 2015. The decline continues slowdown that started at the beginning of the year.

However, the increased economic uncertainty resulting from the Brexit vote has pushed up gold prices and gold mining companies such as Polymetal.

FTSE Russell said online gambling group GVC and energy services company Hunting would win promotion to the FTSE 250 mid-cap index as car dealer Pendragon and Circassia Pharmaceuticals drop out.

The changes will take effect on Sept. 19.

(Editing by Larry King)