Shares in the City drift lower in subdued trading
Investors sat on the sidelines for most of the session with little in the way of corporate activity to encourage money into the market.
Revised figures showing the economy grew at a slower pace than previously thought in the second quarter did little to bolster spirits.
And with US markets sliding in early trading on Wall Street, the Footsie ended the day down 44.9 points at 4389.8 - although it was up 1.3% on the week.
Analysts said the thin volumes reflected investors' nerves about splashing out and taking up positions in the current uncertain climate. Martin Dobson, head trader at NatWest Stockbrokers said: "The volumes aren't amazing and people are adopting a wait and see attitude."
Economic data today confirmed expectations that the UK economy grew at a slower pace than initially forecast in the second quarter of the year 0.6%.
While the revision, down from 0.9%, was forecast, analysts said the drop was likely to renew fears about the speed of the economic recovery.
Banks and telecom stocks were among the fallers today with mmO2 tumbling 2p to 50p and Vodafone slipping 1p to close at 108p. Of the banks, Barclays closed down 10p at 476p, Royal Bank of Scotland ended the day down 30p at £16.18 and Lloyds TSB fell 11p to 589p.
Slips in the oil price also pushed BP and Shell down, with BP falling 9p to 528p and Shell easing 2p to end up at 451p.
Drugs giant GlaxoSmithKline lost early gains made on news it was seeking legal action to protect a key drug from generic competition. It fell 4p to £13.26.
But rival AstraZeneca recovered some of its recent heavy losses to edge ahead 2p to £19.73 still 17% down on the week. The group's shares were hurt after it revealed disappointing results for its Iressa cancer treatment earlier this week.
With little corporate news in the City, attention focused on smaller stocks and hi-tech group Densitron Technologies plunged 11% after a profits warning.
The group said a decision to pull its Cassius PC from the retail market meant full-year profits would miss targets and its shares fell 1p to 14p.
Printing firm Thomas Potts tumbled 17% as it slashed its dividend and warned figures this year would be hit by tougher trading conditions.
The group also said it was conducting a review of its business amid the difficult environment and it closed down p at 2p.
But infrastructure services group Jarvis recovered some of yesterday's losses, climbing 10p higher to 267p.
The group slid yesterday as it emerged Colin Skellett, 57, chairman and chief executive of Wessex Water Ltd, was arrested by police investigating an alleged £1 million bribe.
He was questioned about an alleged fraud when Bath-based Wessex, formerly controlled by the collapsed energy giant Enron, was bought by the Malaysian company YTL earlier this year.
Mr Skellett, who is also non-executive chairman of Jarvis, today denied he had received any corrupt payment.
Biggest risers: Hays, up 5p at 141p, Smith & Nephew, up 13p at 378p, EMI, up 5p at 192p and Sage, ahead 4p at 145p.
Hheaviest fallers: mmO2, off 2p at 50p, Reed Elsevier, down 24p at 593p, Rolls-Royce, down 6p at 148p and Prudential, down 18p at 552p.
