South African materials handling and equipment supplier Barloworld has been dropped from the JSE Top 40 Index.

JSE Securities Exchange (previously the Johannesburg Securities Exchange) is the largest stock exchange in Africa. The Top 40 Index measures the performance of the major capital and industry segments of the South African market and the companies are ranked by full market value in the FTSE/JSE All-Share Index.

Thuli Senosi, spokesperson for Barloworld, says being dropped from the Top 40 has no impact on the operations or management of BAW.

"Management is focused on running the business efficiently and effectively. We have achieved many efficiencies and are managing the business in our core divisions very effectively," he says. "We cannot manage the share price and we do not attempt to do so."

Barloworld believes that continued strong operating performance by the group will influence a recovery in the sharemarket, which may lead to reinclusion in the Top 40.

Senosi says general market declines and recessionary dynamics abroad contributed to Barloworld's drop from the Top 40.

"Barloworld has some exposure to these conditions as well as exposure on the local front to the automotive sector," he explains.