The blue chip index closed 58 points down at 6,821.18 despite a rally from the housebuilders off the back of Redrow's (RDW) bullish trading statement.
The FTSE 100 was pulled down by weakness in financial stocks including declines from Standard Chartered (STAN), Lloyds Banking (LLOY) and Barclays (BARC), all down between 2% and 3% in value.
Among the mid caps, Redrow took the top spot with a near-10% share price rise, followed by 5.5% gain from Sports Direct (SPD) which saw it would engage with shareholders on corporate governance issues and that a further review would be undertaken into the retailer's working practices.
MAIN NEWS OF THE DAY
Redrow said it hadn't seen any major impact on trading since the Brexit vote. In contrast, Berkeley Group, up 3.6% to 2788p, said reservations were down but prices were resilient and cancellation levels had reverted back to the norm after a brief hike following the EU referendum.
UK retail sales weakened in August, on the heels of an improvement in July. British Retail Consortium's retail sales monitor showed like-for-like (LFL) sales in the four weeks to Aug. 27 fell 0.9% on the year. In July, LFL sales rose 1.1%.
LARGER COMPANY MOVERS
EasyJet (EZJ), up 1.7% to 1150p, said it carried 72.8m passengers in the year to August, up 6.8%, on a 12-month rolling basis. Load factor of 91.8% was up from 91.4%.
Halfords was flat at 372p despite a positive trading update. It reported a recovery in bike sales and a boost from customer orders for roof boxes and child car seats.
Strong demand and 'immediate opportunities' for near term growth triggered an 8.8% rise in Irish software group Kainos (KNOS) to 170p.
SMALLER COMPANY MOVES
Mobile Streams (MOS) shot up 231% to 13.25p after saying its Indian subsidiary had exceeded the key milestone of 50,000 active subscribers.
Virtual reality content provider EVR Holdings (EVRH), up 9.4% to 1.75p, said subsidiary MelodyVR has entered into a strategic partnership agreement with Telefonica to trial its app in O2 stores in Germany.
Staffing agency InterQuest (ITQ), down 22% to 45p, said its H1 revenues fell 9% to £73.8m, with net fee income down 10% to £11.0m and adjusted pretax profits lower 44% to £1.4m. Interim dividend was 0.5p a share, from 1.0p a year ago.
Curtis Banks (CBP), down 16.3% to 271.95p, posted an operating profit of £1.6m for the six months to the end of June - up from £1.4m last time - while operating revenues moves to £10.8m from £7.5m.
PowerHouse Energy (PHE), up 6.9% to 0.855p, completed its system-wide testing programme for the G3-UHt Unit in Brisbane, Australia. It said this was a significant milestone for the company.
Ceres Power Holdings (CWR), up 8.1% to 10p, said it would begin trials of its prototype home power systems in the UK later this year.
Kodal Minerals (KOD) reversed earlier gains to trade 7.7% down at 0.157p. The miner increased its exposure to the high-demand lithium market via a deal to explore and acquire a concession in southern Mali prospective for lithium mineralisation.
Redx Pharma (REDX), up 2% to 26p, entered into an agreement with Quay Pharma to manufacture the clinical trial supplies for Redx's Porcupine inhibitor (RXC004), which has the potential to tackle hard-to-treat cancers.
MartinCo (MCO) advanced 11.8% to 154.8p after acquiring EweMove Sales and Lettings Ltd, a "hybrid" estate agency franchisor, for a total consideration of up to £15m.
Vast Resources (VAST), up 3.9% to 0.27p, signed a long-term off-take agreement with Transamine Trading SA, the Geneva-based global trader of non-ferrous metals, for all concentrates produced at Vast's Manaila Polymetallic Mine (MPM) in Romania.