FTSE:6,014.80 (–68.19) Mid 250:11,727.66 (–100.63) Small Cap:3,285.13 (–12.22)

UK STOCKS fell, halting the FTSE 100 Index’s three-week gain, as investors speculated unrest in Libya will cause energy prices to climb, curbing economic growth.

Bank shares fell as demand for overnight loans from the European Central Bank remained elevated for a third day.

The benchmark FTSE 100 Index retreated 68.19, or 1.1 per cent, to 6,014.8 at the close in London.

The FTSE 100 is still up 2 per cent this year, extending its rally since March 2009 to 71 per cent, as investors bet that a stronger economic recovery will boost corporate earnings.

“The situation in the Middle East is omnipresent and weighing on the market,” said Kishan Mandalia, a sales trader at City Index in London. “Financials are down after a strong week. There’s not much movement today” with the US market closed for a public holiday.

Barclays fell 2.2 per cent to 322.25p. Royal Bank of Scotland slipped 3.9 per cent to 46.64p. Royal Bank of Scotland is preparing to sell $1.6 billion of unwanted loans left over from when the commercial-property sector was booming, the Financial Times reported, citing unidentified people familiar with the matter.

The growing sense of uncertainty pulled BP shares 0.3 per cent lower to 491.55p as it suspended preparations to explore for oil off the coast of Libya, where the levels of violence seen during the uprising peaked.

Royal Dutch Shell was 0.7 per cent weaker at £21.73, with the sector’s heavy weighting amplifying the toll taken on the FTSE 100.

Invensys jumped 3.7 per cent to 357.8p. JJB Sports sank 17 per cent to 31.5 pence. The company said it raised £31.5 million in a share sale.

Cineworld rose 2.4 per cent to 218p. BC Partners may have made takeover approaches to the UK cinema operator and Odeon Cinema Holdings, the Mail on Sunday reported.

Fresnillo jumped 2.9 per cent to 1,550p. The world’s largest primary silver producer jumped after prices for the metal reached a 30-year high.

Shares in London-listed gold miner Centamin Egypt rose 5.9 per cent to 129.3p, the top gainer on the FTSE 250.

Randgold Resources, a gold mining company, rose 4 per cent to 5,235p. – (Bloomberg/Copyright The Financial Times Limited 2011. )