Banking giant HSBC prevented the FTSE 100 Index from testing record highs after its profits tumbled.
Shares in the heavyweight stock slumped almost 5%, which in turn saw the FTSE 100 Index remain broadly flat - down three points to 6912.2.
The top flight had been in positive territory earlier in the session after Greece and its European creditors agreed a four-month extension to the country's bail-out agreements.
Further progress depends on a list of reforms due to be submitted by the Greek finance minister Yanis Varoufakis.
HSBC said a weak fourth quarter in its investment banking arm contributed to the bank's annual profit dropping by 17% to 18.7 billion US dollars (£12.1 billion) for 2014.
The slide for such an important blue-chip stock meant the FTSE 100 Index dashed hopes that the top flight might beat 1999's record close of 6930.
The pound was stronger against the US dollar at 1.55 after American home sales in January grew at their slowest pace for nine months. Sterling was also higher versus the euro at 1.36.
In terms of London shares, banking heavyweight HSBC was the focus of attention after chief executive Stuart Gulliver admitted the banking giant "disappointed" last year.
City investors agreed as shares fell 28p to 577.2p and Asia-facing rival Standard Chartered dropped by 45.4p to 928.1p.
IG market analyst David Madden said: "London-listed banks that have a large exposure to the Far East are doing the most damage; HSBC and Standard Chartered are keeping the London equity market in the red."
Barclays avoided the sell-off and Lloyds Banking Group was up 1p to 79p after it emerged that the Government has sold another £500 million of shares in the part-nationalised lender. The rise in the share price comes with Lloyds expected to announce its first dividend in seven years later this week.
Other big risers in the FTSE 100 included British Airways owner International Airlines Group, which climbed 11p to 562p ahead of its results later this week.
And Primark owner Associated British Foods was higher after it reported more strong growth for its retail arm, with sales for the first half of the financial year set to be 16% higher at constant currency rates.
With Primark and the rest of the business continuing to trade in line with expectations, shares rose 22p to 3058p, a gain of 1%.
Outside the top flight, housebuilder Bovis Homes was higher after it posted a 69% rise in annual profits to £133.5 million, in line with expectations after an "excellent" year.
Shares were initially lower due to analyst concerns over the price of land but the stock later recovered to stand 3.5p higher at 951p.
The biggest risers on the FTSE 100 Index were G4S up 9.3p at 293.2p, easyJet up 46p at 1798p, Shire up 125p at 5190p and Admiral Group up 33p at 1496p.
The biggest fallers on the FTSE 100 Index were Standard Chartered down 45.4p at 928.1p, HSBC down 28p at 577.2p, Anglo American down 48.5p at 1198p and Tullow Oil down 15.2p at 392.1p.
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