Lloyds Banking Group was the biggest faller at 3.4 per cent to 65.05p as the outlook for the British banking sector remained unclear.

Comments from deputy prime minister Nick Clegg calling for further bank reform hit part-nationalised banks Lloyds and Royal Bank of Scotland Group.

The latter also saw its share price drop by 1.9 per cent, despite gains last week following reports that it could exit the asset protection scheme sooner than planned.

Engineering and IT group Invensys saw share price drop by 2.9 per cent to 325.4p as Goldman Sachs downgraded the company to a 'neutral' outlook.

Weir Group dropped 2.5 per cent to 1,612p, despite a recent upgrade by Goldman Sachs to 'buy' status.

British American Tobacco was the biggest riser at the close of trading on Monday, rising by 4 per cent to 2,373p.

While restaurant and coffee shop operator Whitbread saw share price rise by 3.1 per cent to 1,773p, while mining group Rio Tinto increased by 2.5 per cent to 4,347.5p.