Supermarket group Dia drops out of Spain's blue-chip index

MADRID, Dec 10 (Reuters) - Spanish supermarket chain Dia on Monday dropped out of Spain’s blue-chip stock market index, the latest hit to the company that is facing a shrinking market share and a sliding stock price.

The budget retailer, whose biggest shareholder is Russian tycoon Mikhail Fridman, announced a string of senior hires on Dec. 4 in a bid to turn the business around.

Later on the same day, interim chairman Stephan Ducharme stepped down from the board to focus on relaunching the struggling business. Ducharme, an executive at Fridman’s investment vehicle LetterOne, had been named provisional chairman in October.

The company has issued three profit warnings in 12 months and shares have lost nearly 90 percent of their market value since January.

Its market share in Spain has steadily fallen over the past five years as economic recovery reduced its low-cost appeal.

Pulp mill Ence will replace Dia in the 35-strong blue-chip Spanish index. (Reporting By Sonya Dowsett. Editing by Jane Merriman)