U.K. energy stocks gained, led by BP Plc after Deutsche Bank AG raised its estimate for the company's share price.

Banking stocks including Barclays Plc declined on concern rising interest rates will erode investments and profit growth. Associated British Ports Holdings Plc jumped after Goldman Sachs Group Inc. increased its bid for the biggest U.K. port operator by 8.3 percent to 2.8 billion pounds ($5.1 billion).

The FTSE 100 Index was little changed, adding 8, or 0.1 percent, to 5692.1 as of the close in London. The measure rose 1.6 percent this week. The FTSE All-Share Index advanced 0.1 percent to 2896.34, while Ireland's ISEQ Overall Index lost 0.4 percent to 7301.97.

BP, Europe's largest oil company, gained 2 percent to 617 pence. Royal Dutch Shell Plc, Europe's second-largest oil company, climbed 1.4 percent to 1753 pence. The two companies account for 13 percent of the FTSE by market value.

``If you have to buy something I would still look at energy,'' said Philippe Gijsels, senior strategist at Fortis Bank SA's private investment unit in Brussels, which manages $62 billion. ``Commodity prices are coming down but oil is not.''

Deutsche Bank AG analysts increased their share-price estimate for BP to 800 pence from 750 pence, and raised Shell to ``buy'' from ``hold'. Germany's largest bank also raised its estimates for oil prices because world economic growth will increase demand while geopolitical tension threatens supply.

Crude oil rose above $71 a barrel in New York, pulled higher by gasoline, after a refinery in Louisiana cut fuel output because a spill shut a ship channel.

Banks Fall

Barclays, the U.K.'s third-biggest bank by market value dropped 0.9 percent to 597 pence. Lloyds TSB Group Plc, Britain's No. 5 bank lost 1 percent to 521.5 pence.

A U.S. economic report showed durable goods orders excluding transportation equipment rose more than analysts expected, failing to quell concerns the Federal Reserve will keep raising rates. Higher interest rates would erode the value of bonds owned by banks and insurers, and crimp demand for mortgages and loans.

AB Ports climbed 4.3 percent to 919 pence. A Goldman Sachs- led consortium increased its bid for the company to 910 pence a share, topping an offer from Australia's Macquarie Bank Ltd.

Separately, Macquarie agreed to buy Stagecoach Group Plc's London bus operation for 263.5 million pounds to expand in the U.K. Stagecoach shares rose 2.8 percent to 110 pence. Rivals National Express Group Plc gained 5.4 percent to 850 pence, and Arriva Plc, a U.K. bus and rail operator, added 6.2 percent to 572.5.

Shares of Sanctuary Group Plc slumped 38 percent to 23.25 pence. The U.K. record producer, whose shares have lost 99 percent of their value this year, said the performance of its recorded product division in the year to Sept. 30 will be ``below previous expectations''.

The following stocks also gained or fell in the U.K. market. Stock symbols are in parentheses.

Cadbury-Schweppes Plc (CBRY LN) lost 0.7 percent to 518 pence. The maker of Dr Pepper soda is withdrawing seven varieties of Dairy Milk chocolate in the U.K. that may contain traces of salmonella.

Forth Ports Plc (FPT LN) added 1.8 percent to 1860 pence. The Edinburgh and London port operator said first-half results met expectations, and said it expected to make progress in 2006. The shares were raised to ``buy'' from ``hold'' by analyst Andy Murphy at Panmure Gordon & Co.

Freeplay Energy Plc (FRE LN) lost 3.2 percent to 30 pence. The maker of battery-free electric products such as wind-up radios said its full-year loss widened because of the recall of two products and costs related to expansion.

Screen Technology Plc (SCT LN) tumbled 12 percent to 37.5 pence. The U.K. maker of high-resolution screens for advertising and entertainment displays said it expects full-year sales to ``significantly'' fall short of analyst estimates because of supplier delays.

Tullow Oil Plc (TLW LN) gained 5.8 percent to 354 pence. A Ugandan oil well, in which Tullow has a stake, produced crude oil in a test, according to Hardman Resources Ltd., an Australian oil and gas explorer.

Vebnet Holdings Plc (VBT LN) climbed 7.1 percent to 157.5 pence. The Scottish provider of software for employee-benefit plans, said it expects fiscal-year sales and earnings to be ahead of market estimates.

________________________________________________
 

To contact the reporter on this story:
Amy Wilson in London at  awilson23@bloomberg.net.

©2006 Bloomberg L.P. All rights reserved.