Britain's top share index ended the week on a sour note, with concerns over US consumer spending adding to worries over sky-high oil prices, with services firm Rentokil the top faller after it said a potential suitor was not ready to make a proper bid.
Shares in Rentokil, whose businesses range from rat-catching to hygiene and security, fell 2.3 percent to 158-1/2 pence after it said Raphoe Management, which had previously made a bid approach, was not ready to put forward a proposal.
The shares also suffered after Credit Suisse First Boston cut its rating on the stock to "neutral" from "outperform".
The FTSE 100 index ended down 27.6 points, or 0.5 percent, at 5,228.1, erasing the morning's gains to close lower for the fourth consecutive session.
Concerns that rocketing oil prices will curb consumer spending and eat into corporate profits has sent the index down for the second week in a row. During that time the FTSE has shed 2.2 percent of its value.
Edward Menashy, an economist and strategist at brokerage Charles Stanley, said that although the market had been pricing in higher oil prices, the recent acceleration of the increase had proved a rude awakening for investors.
"In the longer term oil is a tax on the consumer and on companies. It reduces spending power," he said.
Stocks also suffered from a report showing US consumer sentiment, an indicator of consumer spending, fell more than expected in August, suggesting higher gasoline prices are eating into Americans' household budgets.
Dealers said a clearer picture of the market's path would probably emerge in the next few weeks as trading activity picks up after Monday's market closures for a UK public holiday.
Turnover was well below usual, with only 1.5 billion shares changing hands.
Hilton rose 2 percent after a UBS price target upgrade and in a delayed reaction to steady half-year profits reported on Thursday, dealers said.
"A few people were surprised that they were so far down yesterday," one dealer said. "This is just a bit of a bounce back from that."
Hilton's results showed a strong performance in its betting division, which helped support shares in leisure firm William Hill. Shares in the bookmaker rose 0.9 percent.
Shares in tobacco firms Gallaher and Imperial Tobacco failed to hold onto earlier gains that were triggered by an announcement from the world's third-biggest tobacco group, Japan Tobacco, that it would not rule out three European rivals as potential allies or acquisitions, including both UK companies.
Imperial Tobacco ended marginally higher, up 0.1 percent, while Gallaher dipped 0.4 percent.
Corus led mid-cap risers with a gain of more than 5 percent, a day after the steelmaker reported forecast-beating first-half earnings.
"People might be viewing that stock as a potential target," said Robert Parkes, UK equity strategist at HSBC Securities.
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