PARIS (Bloomberg) -- PSA/Peugeot-Citroen will be removed from France's leading stock index after its shares declined more than 60 percent in the last 12 months.
Peugeot shares have been trading near a 26-year low in recent months as Europe's economy struggles. The automotive division has been burning through 200 million euros ($250 million) in cash a month for the last year, CEO Philippe Varin said in July as the company reported an 819 million-euro first-half net loss.
Europe's second-largest automaker will be replaced by chemicals and plastics maker Solvay SA in the CAC 40 index on Sept. 24, NYSE Euronext said in a statement. Peugeot has been a member of the CAC 40 since the creation of the index in 1987.
Jean-Baptiste Mounier, a spokesman for Peugeot, declined to comment.
Peugeot's stock declined as much as 3.1 percent today and traded at 5.97 euros, down 1.2 percent, at 9:10 a.m. in Paris.
"Peugeot has been the weakest weight in the index for several quarters now," Christophe Wakim, a quantitative analyst at Exane BNP Paribas, said in an interview with Bloomberg TV before the decision. "It's just the reflection that Peugeot, unfortunately, has destroyed value for its shareholders."