* FTSE 100 falls 0.1 pct to 6,788.07 points
* Aberdeen AM falls after suffering outflows
* Uncertainty over Ukraine still weighs on equity markets
By Sudip Kar-Gupta
LONDON, July 28 A slide in financial stocks,
including Aberdeen Asset Management, knocked back
Britain's top equity index on Monday, to its lowest level in
nearly a week.
The blue-chip FTSE 100 index closed down by 0.1
percent, or 3.48 points, at 6,788.07 points.
Fund management group Aberdeen Asset Management was the
worst-performing FTSE 100 stock in percentage terms, falling 5.3
percent after the company reported fund outflows in its third
Lloyds Banking Group closed flat, recovering from a
slight dip after it agreed to pay fines totalling $370 million
to U.S. and British authorities investigating its part in a
global interest rate rigging scandal and manipulating fees for a
British government lending scheme.
The fact that Lloyds would be fined had been widely flagged,
but the ongoing regulatory pressure on Lloyds and other banks
still dragged down the shares of its part-nationalised rival
Royal Bank of Scotland.
RBS, which had surged 10.8 percent on Friday after posting
surprise second-quarter profits, closed down 3.4 percent on
"The banks have taken a bit of a hit this afternoon. The
Lloyds' fine was a bit bigger than I thought," said Berkeley
Futures associate director Richard Griffiths.
Analysts at Investec said in a note that some investors were
being complacent about Lloyds' regulatory fines. However, they
also said that the latest fine was a relatively small "drop in
the ocean" given that Lloyds had paid out around 10 billion
pounds in total on mis-selling loan insurance.
JNF Capital investment manager Edward Smyth said UK banking
stocks were a worthwhile buy at current levels.
"Lloyds should be able to absorb this fine. I am bullish on
the UK banks around these levels," he said.
WORRIES OVER UKRAINE REMAIN
Another factor weighing on equity markets was ongoing
tensions between Russia and Ukraine. A total of 298 people were
killed on July 17 when a Malaysian passenger plane was shot down
over rebel-held territory in eastern Ukraine, where Kiev's
forces are fighting pro-Russian separatists.
A White House adviser said on Monday that U.S. President
Barack Obama was scheduled to speak on Monday with four European
leaders about the situation in Ukraine.
"There's the potential for further developments in Ukraine,
which is keeping everyone on the back foot," said IG analyst
Uncertainty over Ukraine has contributed to push the FTSE
100 down by more than 1 percent from peaks reached in May and
However, many investors still think the index will recover
later in the year to hit a record high of 7,000 points, helped
by a gradual recovery in corporate profits and the British
(Additional reporting by Francesco Canepa; Editing by Gareth
Jones and Susan Fenton)