Arm Holdings (ARM.L) was the biggest faller at the close of trading with share price closing 3.3 per cent down at 595.5p.

The microchip manufacturer saw its share price drop despite reporting a rise in pre-tax profit to £54.2 million during the second quarter of 2011.

Analysts at Peel Hunt reiterated its 'hold' recommendation for the company, which also revealed a healthy pipeline for the remainder of the year.

Burberry Group (BRBY.L) dropped 3.2 per cent to 1,549p as Royal Bank of Scotland downgraded its recommendation to 'hold'.

Engineer GKN (GKN.L) dropped 3 per cent to 231p, while listed hedge fund Man Group and oil giant BP both slipped by 2.6 per cent to 233.9p and 463.25p, respectively.

The biggest climber was BG Group (BG.L), which added 4.3 per cent to its share price, closing at 1,486p after a strong set of results.

Vodafone (VOD.L) rose 1.8 per cent to 164.95p, while Eurasian Natural Resources (ENRC.L) was up 1.3 per cent to 791.3p.

IMI (IMI.L), the engineering company, and miner Anglo American (AAL.L) both close 1.2 per cent higher at 1,099p and 3,061.5p, respectively.

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