The index of 100 leading shares has closed down on the day, with major insurers the biggest drag on markets.
The index closed at 5,703.37, down 23.84 points or 0.42%, although it made a slight recovery in the final hour of trading.
Old Mutual finished 4.75% down at 138.3p after news HSBC would not be buying a controlling stake in South African bank Nedbank, which it owns.
The firm was also hit by a downgrade of the insurance sector by Citigroup, which also dragged RSA Insurance down by 3.23% to 131.8p and Standard Life down 3.24% to 227p.
However, RBS and Barclays closed 2.43% and 1.8% up respectively, providing a recovery from yesterday's falls, while BT Group ended up 2.93% at 147.4p after assuring the market its government contracts would remain in place, despite austerity measures.
Resolution's purchase of Bupa pushed its share price up 0.91% to 253.8p.
Meanwhile, in Europe, the Cac was up 0.01% at 3819.71 and the Dax was up 0.41% at 6481.49.
In the US, the Dow Jones is down 0.12% at 11081.10, with Ben Bernanke's hints of further quantitative easing doing little to lift the markets.
Additional reporting: ShareCast
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