Insurers were the biggest fallers at the end of trading, with life insurance consolidation vehicle Resolution falling by 3.8 per cent to 211.3p.

It was joined by Standard Life, sliding by 3.7 per cent to 201.2p, and Legal & General dropping 2.8 per cent to 91.4p.

Barclays saw share price drop by 2.6 per cent to 256.15p, while financial services group Old Mutual also shed 2.5 per cent finishing at 118.5p.

Financials continued to suffer as markets remained anxious over other European economies, such as Spain and Portugal, following the recent bail-out of Ireland.

Oil & gas companies were among the strongest risers at the close of trading with Essar Energy and Cairn Energy as commodity prices rebounded.

Essar Energy saw share price rise by 4.1 per cent, while Cairn Energy reported an increase of 3.4 per cent to 386.5p.

Miner African Barrick Gold reported a 34 per cent rise in share price to 520p after earlier reporting positive results from initial infil drill holes at its Nyanzaga Project.