Babcock slipped to its lowest in seven years after RBC turned cautious on the defence outsourcer.
Though Babcock may look cheap given its strong relationship with the Ministry of Defence, its weak underlying growth and questions over the stewardship of chairman Mike Turner were likely to keep investors on the sidelines, RBC said.
It argued that, to restore credibility, Babcock had to refresh its boardroom.
Micro Focus edged higher after the software company said full-year revenue was trending towards the upper end of previous guidance and doubled its share buyback programme.
Capital & Counties led the FTSE 250 gainers after saying it had received a number of proposals for its Earls Court development, including a potential buyout offer from Hong Kong company CK Asset. The company said it continued to work on a possible demerger.
Insurer Hiscox retreated after its third-quarter results showed higher than expected claims, slowing premium growth and a caution that the slowdown would continue into the fourth quarter.
Inchcape led the car dealerships lower after UK industry data for October showed new car registrations down a further 2.9 per cent.
Get alerts on UK equities when a new story is published