* FTSE 100 index down 0.4 pct at close
* Lloyds, Smith & Nephew, Shell among top losers
* Rolls-Royce jumps on positive outlook
* AstraZeneca closes at a record high (Adds detail and updates prices at close)
By Kit Rees and Atul Prakash
LONDON, July 28 (Reuters) - Britain's top share index dippedon Thursday after hitting a one-year high in the previoussession, with Lloyds, Smith & Nephew and Royal Dutch Shellfalling after poorly received trading updates.
The blue-chip FTSE 100 index was down 0.4 percent at6,721.06 points at its close.
The mid-cap index also fell 0.1 percent, weigheddown by a 24.7 percent slide in lender International PersonalFinance, which slumped after reporting a 29 percent fallin adjusted profit before tax.
The FTSE 100, whose international companies are less exposedto any weakness in the domestic economy arising from Brexit, isup 6 percent since the Brexit vote, while thedomestically-focused mid-cap index closed 0.6 percent below itspre-Brexit level.
"The FTSE 100 is seeing some weakness as earnings from someheavyweight companies have disappointed. Given the recent runhigher..., it would not be surprising to see a further pullbackin the next sessions," said Jawaid Afsar, senior trader atSecurequity.
But he said further rises could be on the cards, with 6,900a target in the next few weeks.
The biggest decliner was Lloyds Banking Group,which dropped 5.8 percent after saying that capital generationcould be lower as it steps up its cost cutting plans, withinvestors citing concerns about its ability to maintain itsdividend.
"Lloyds still has a robust capital position ... However,lower capital generation impinges on the bank's ability toreturn cash to shareholders," said Laith Khalaf, senior analystat Hargreaves Lansdown.
"Lloyds has increased its interim dividend significantly,but if the Brexit axe is to fall anywhere, it's likely to be onthe special dividend at the end of the year."
Shares in Smith & Nephew fell 5.6 percent afterEurope's biggest maker of artificial knees and hips said it wascontinuing to struggle with weak demand for its products inChina.
Royal Dutch Shell fell 2.9 percent after reportinga fall of more than 70 percent in quarterly profit, far worsethan analyst estimates.
The blue-chip FTSE index was underpinned by a sharp rally inthe shares of some companies following updates.
Engineering firm Rolls-Royce surged 13.5 percentafter reaffirming profit would improve in the second half of theyear. It also said its turnaround plan would deliver cost cutsat the top end of a guided range.
Likewise, pharma company AstraZeneca closed at arecord high, jumping more than 7 percent following a solid setof results.
Miner Anglo American was up 5.4 percent after sayingits net debt had fallen and that a cost-cutting and asset-salestrategy was on track. (Reporting by Atul Prakash; Editing by Kevin Liffey)
