* FTSE down 0.3 pct, geopolitical concerns linger
* Energy stocks gain, oil could peak at $220 - analysts
* Banks lower, RBS results disappoint
* FTSE volatility index up over 40 pct this week
By David Brett
LONDON, Feb 24 (Reuters) - Upbeat comment from BP on its
activities in India added to a rebound in energy stocks, but
Britain's top share index remained hamstrung on Thursday by the
ongoing troubles sweeping the Middle East and North Africa.
BP's <BP.L> Indian head, Sashi Mukundan, estimates there are
15 trillion cubic feet of gas resources in the 23 blocks it has
bought into in its $7.2 billion deal with Reliance Industries
<RELI.BO> and there could be more. []
"The BP/Reliance deal is spectacularly positive and shows a
major commitment to India and makes energy capital in India look
more attractive," Daniel Slater, analyst at Arden Partners says.
BP gained 1.0 percent on the news, which helped spark a 3.2
percent rally in oil explorer Cairn Energy <CNE.L>.
Cairn Energy, which has blocks in India, is currently trying
to sell a majority stake in its Indian arm Cairn India <CAIL.BO>
to Vedanta Resources <VED.L>.
Energy stocks were the major ray of light on an index
currently under a cloud of geopolitical troubles.
By 1138 GMT, the FTSE 100 <> was down 15.20 points, or
0.3 percent, at 5,908.33, anchored below seven-month technical
support level of 5,920.
London's blue chip index has shed near 3 percent on the
week, as the price of oil has hit multi-year highs, threatening
to derail the global economic recovery.
Brent crude <LCOc1> surged to its highest price since August
2008 on concern the bloody unrest that has cut more than a
quarter of OPEC member Libya's output could spread to other
producers, including top exporter Saudi Arabia.
"The closest comparison to the current MENA unrest is the
1990-91 Gulf War. If Libya and Algeria were to halt oil
production together, prices could peak above $220 a barrel,"
Nomura said in a note.
BANKS
Risk-sensitive banks <.FTNMX8350>, were the major fallers,
down sharply as investors looked uneasily at the unrest in the
Middle East and North Africa.
RBS <RBS.L> came off worst, down 3.8 percent, as its results
were met with disappointment. []
Bad debts from Ireland, an uninspiring investment banking
performance and lack of dividend put pressure on the shares,
traders said.
Lloyds Banking Group <LLOY.L> were 1.4 percent lower ahead
of results on Friday.
British American Tobacco <BATS.L> fell 2.0 percent, after
the maker of Kent, Dunhill, Lucky Strike and Pall Mall
cigarettes reported full-year results. []
"(The numbers) all looked in line, the dividend was slighter
better than expected and (it announced) a 750 million pound
buyback but the market expected 1 billion so that was a little
disappointing," Alwyn Phillips, a trader at IG Index, said.
GKN <GKN.L> shed 2.3 percent after Citigroup cut its rating
for the automotive and aerospace parts group to "hold" from
"buy" ahead of upcoming full-year results.
"We sense a pause in the pace of its (GKN's) recent rapid
profit rise," Citigroup says in a note.
Capita <CPI.L> was the star FTSE 100 performer, up 7.8
percent, as investors cheered the outsourcing group's full-year
results.
"(We expect) the valuation (to) revert from the current,
historically low level to at least the high-teens price earnings
that a company of this quality deserves," Peel Hunt said.
Peer Serco <SRP.L> added 2.5 percent.
(Additional reporting by Simon Falush; Editing by Jon
Loades-Carter)
