Two of the stars of the technology boom have been relegated from London's FTSE 100 list of leading companies.

Chip designer Arm Holdings and software company Logica have both been demoted because of their falling share prices.

Obviously it's quite rewarding when you pass a milestone but it's not really very significant

Anthony Habgood Bunzl chairman

The industrial distributor Electrocomponents has also been pushed out.

The software company Sage is now the only so-called new economy business left in the index.

Good earnings

Coming into the list in place of the once glamorous stocks are traditional businesses.

They are the newly listed mining company Xstrata, precious metals and industrial materials business Johnson Matthey, and paper and plastics firm Bunzl.

Johnson Matthey's work includes gold refining

Anthony Habgood, chairman of Bunzl, told BBC News Online that it was clear investors were getting back to fundamentals and looking for good earnings and cash flow.

Of the boom in high-tech stocks, he said: "I wasn't dismayed to see the other companies rise without having positive profits or positive cash flow.

"I was a little surprised at the investors' support for them."

Milestone

Bunzl's main business is distributing paper and packaging but it also makes cigarette filters.

Mr Habgood said that he welcomed promotion to the FTSE 100.

"Obviously it's quite rewarding when you pass a milestone but it's not really very significant," he added.

The Swiss mining and metals group Xstrata made its debut on the London stock market in March.

Chief executive Mick Davis said the company was hoping to use its strong share price to make acquisitions.

"Our timing turned out to be very good indeed and it has set the company up in a very good way," he added.

Marconi misery

Telecoms companies which have fallen out of the index include Energis, Colt and Kingston Communications

Tech stocks which have fallen out of the index include Autonomy and Misys.

The quarterly shake-up of the indexes will also see some former FTSE 100 companies slipping even further.

Marconi, Telewest and Psion will all be relegated from the FTSE 250 index.

The changes are based on the companies' share prices at Tuesday's close and will come into effect on 24 June.