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Shares in HSBC continued to fall as concerns regarding a possible rights issue and dividend cut circulated.
The possibility of a rights issue arose after a Hong Kong analyst claimed the bank needed to raise $14 billion to cover bad loans in the US.
In a note to clients, Merrill Lynch said several factors which had been underpinning their stock over the last year have begun to wane.
Among these factors is earnings diversification afforded by Asia, reports the Times newspaper.
Marks & Spencer was also hit badly, losing 9.5p per share.
Leading the share price increases was the Mexican silver miner Fresnillo which gained 15.5 p to hit 197p per share.
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