Polymetal pushes housebuilder Berkeley out of UK's FTSE 100

LONDON, Aug 31 (Reuters) - Housebuilder Berkeley Group has lost its place in the coveted, blue-chip FTSE 100 equity index following a sharp drop in its stock price partly caused by Britain's vote to leave the European Union.

FTSE Russell said on Wednesday that Berkeley would be replaced in the index by Russian gold and silver miner Polymetal , whose shares have surged as economic uncertainty has driven up the price of gold, traditionally seen as a safe-haven asset.

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 can drop that stock from their portfolios, while conversely companies that win promotion can attract more interest from investors. (Reporting by Sudip Kar-Gupta; Editing by Dominic Evans)