Gordon raised its rating for G4S to "buy" from "hold" with an increased target price of 295 pence, up from 262 pence, which is broadly in line with the peak seen before the the stock tumbled after the company failed to provide enough guards at the London Olympic Games this year.
Fresh falls by market heavyweight Vodafone, down 1.1 percent, was again the main drag on the blue chips, with the stock extending Monday's 1.7 percent decline and knocking nearly 4 points off the index on concerns about higher costs for mobile operators after the Dutch state raised much more than expected in its auction of fourth generation (4G) frequencies.
"We doubt other remaining European auctions will reach Dutch levels, but to be conservative we have raised our forecast for Vodafone spectrum payments to 9.25 billion pounds (from 8 billion pounds)," over fiscal year 2013 to 2016, Credit Suisse said in a note.
Vodafone also suffered as a defensive stock when investors' risk appetite returned. Defensively-perceived sectors such as drinks and tobacco stocks - which tend to do well even in harsh economic times - were also weak.