Worries over the impact of the political unrest in Egypt saw Britain's top share index fall on Monday, but losses were limited by gains from heavyweight energy issues as the crude price firmed. At the close, the FTSE 100 index was 18.43 points, or 0.3 percent lower, at 5,862.94, having shed 1.4 percent on Friday when worries over the situation in Egypt intensified.
Protesters further stepped up their campaign on Monday to force Egypt's President Hosni Mubarak to quit as world leaders struggled to find a solution to a crisis that has set a fire under the Middle East's political map. Travel firms were big fallers, with traders citing worries over the disruption caused by the protests in Egypt and the impact of a strong crude price.
Tour operator TUI Travel shed 2.6 percent, with mid cap peer Thomas Cook down 3.1 percent, and International Consolidated Airlines Group losing 1.8 percent. Risk-sensitive banks were a drag on the blue chips as investors remained nervous about the global picture, with RBS was the top blue chip gainer, adding 5 percent, rallying after sharp falls on Friday as it said it has suspended drilling in Egypt but gas production remained normal.
Traders highlighted the greater impact of BG's recent new oil discovery in the Santos Basin, offshore Brazil. "BG Group remains a dark horse among leading FTSE 100 oil & gas explorers even though the ongoing exploration developments in the massive Santos Basin should be uppermost on trader's radar," said Andrew Gibson, head of research at Galvan.
But BP bucked the firmer oil sector trend, shedding 0.4 percent, ahead of its fourth-quarter results due on Tuesday. There were concerns over BP's dividend, as Russian shareholders in its TNK joint venture convened to consider withholding the $1.8 billion payment.
Miners rallied led by Xstrata, up 2.2 percent, excited by merger activity among US coal miners. Massey Energy agreed to a $7 billion take-over offer from Alpha Natural Resources. US blue chips were 0.2 percent higher by London's close as merger activity, and solid earnings from Exxon Mobil, helped offset concerns about the unrest in Egypt. Among individual gainers in London, Rexam added 2.1 percent after the can maker signed a contract in North America and a long-term deal with its largest customer in Brazil.
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