* FTSE 100 off 0.4 pct; Egypt turmoil unsettles investors
* Travel firms fall on travel disruption, higher oil price
* Risk-sensitive banks are sharp fallers
* Rexam star performer on Americas deals boost
By Tricia Wright
LONDON, Jan 31 (Reuters) - Britain's top share index fell on
Monday as political turmoil in Egypt unsettled investors, with
travel firms and banks among the laggards, while energy firms
limited losses.
By 1225 GMT, the FTSE 100 <> index was down 23.41
points, or 0.4 percent, at 5,857.96, having recovered from a low
of 5,815.44 hit earlier in the session.
The index shed 1.4 percent on Friday.
"It's surprising that it's bounced back given the problems
that are coming out of Egypt," Manoj Ladwa, senior trader at ETX
Capital, said.
"What we did see was that there was some tentative buying in
the indices in the hope of a bounce ... when (the FTSE 100) gets
up to 5,900 we could see some more profit taking on board."
Protesters intensified 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 torn up the
Middle East political map. []
Travel firms were among the worst hit on London's blue chip
index, with traders citing the travel disruption caused by the
protests and a firmer oil price.
Tour operator TUI Travel <TT.L> and International
Consolidated Airlines Group <ICAG.L>, the company formed by the
merger of British Airways and Iberia, shed 2.9 percent and 1.5
percent respectively.
On the second tier, Thomas Cook <TCG.L> dropped 2.2 percent.
"Egypt has been a successful destination for tourists, and
though Egypt and Tunisia combined would account for only 10
percent of travel operators' earnings, they are being hit by
risk aversion," said Matthias Desmarais, head of leisure and
services at Exane BNP Paribas in Paris.
OIL STOCKS LIMIT LOSSES
Energy stocks <.FTNMX0530> were in demand, limiting the FTSE
100's losses, with the oil price <CLc1> supported by fears the
unrest in Egypt could spread across a region that produces over
a third of the world's oil.
BG Group <BG.L> rose 2.6 percent, extending its recent gains
after an oil find in Brazil, as it said it has suspended
drilling in Egypt, but gas production remained as normal.
Royal Dutch Shell <RDSa.L>, up 0.5 percent, was helped by an
upgrade to "outperform" from "neutral" by Credit Suisse.
BP <BP.L> bucked the firmer sector trend, shedding 0.5
percent, ahead of its fourth-quarter results 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. []
Risk sensitive banks <.FTNMX8350>, meanwhile, were sharp
fallers.
Among individual movers, Rexam <REX.L> grabbed the top spot
on the blue chip leader board, up 2.9 percent, after the drinks
can maker completed contract negotiations in North America and
signed a long-term contract with its largest customer in Brazil.
International Power <IPR.L> fell 2.1 percent as Credit
Suisse downgraded the firm to "underperform" from "outperform"
on valuation grounds following its tie-up with French utility
GDF Suez <GSZ.PA>.
"I think a lot of the risk from the Egypt situation was
priced in to a certain extent" Michael Hewson, market analyst at
CMC Markets, said.
"But I think the upside in equity markets is going to remain
a little bit limited in the short term while that situation
continues to bubble under the surface," he said.
(Editing by Jon Loades-Carter)
