Investors bank gains amid Libya unease

Heavily armed rebels clashed with forces loyal to Colonel Muammar al-Gaddafi on the outskirts of the Ras Lanuf oil terminal as the head of Libya's rebel council vowed "victory or death".

Traders said unconfirmed reports of unrest in Saudi Arabia and Bahrain spooked the market, with Brent crude in London jumping to $116 a barrel.

The benchmark FTSE 100 fell 14.7 points, or about 0.2 per cent, to 5,990.39, fading from a session high of 6,052.08. The index had jumped 1.5 per cent on Thursday.

Rupert Armitage, director at Shore Capital, said: "We've had a decent tick up. Only two days ago we were 100 points lower. Wall Street had a decent day on Thursday; I think it's probably a natural reaction. In these days of volatility, though, it's not exactly a crash."

In America, Wall Street's Dow Jones Industrial Average was down in early trading despite the US labour department saying the economy generated 192,000 jobs in February, up from January's 63,000. The new figures topped a week of forecast- beating jobs data, including a weekly drop in unemployment claims and a positive report on private sector jobs. But the latest stats were in line with expectations, meaning a muted reaction.

Hints from the European Central Bank on Thursday that a rise in interest rates could be on the cards at its next meeting also failed to derail markets. The pound was down against the euro at €1.16 as the single currency continued to surge on hopes of higher rates. Sterling was also down against the dollar at $1.62.

The impact of surging oil prices was evident on the fallers' board, as British Airways parent International Consolidated Airlines fell nearly 3 per cent or 6.8p at 226.8p and Thomson Holidays owner TUI Travel dropped 2.4p at 239.4p.

Advertising group WPP provided the focus for corporate results after the blue-chip company reported a strong end to 2010 and a 27 per cent rise in full-year profits. It forecast like-for-like revenues growth of 5 per cent this year, but shares slipped 3 per cent, or 22p to 814.5p, following a recent strong run.

Outsourcing firm Serco was the biggest riser in the top flight - up 27p to 618.5p - after Espirito Santo Investment Bank predicted earlier this week that it will continue to generate profit growth. Engineering firm IMI was also on the risers board - up 14p to 957p - after several brokers raised their ratings, backing the firm's three-year growth strategy that will see it increase its presence in emerging markets.

Among the Scottish stocks, Aberdeen-based oil and gas explorer Faroe Petroleum climbed 3.25p to close at 186p after RBC Capital Markets branded the firm as its "favourite UK-focused exploration play".

Faroe is due to drill its Lagavulin exploration well later this month, one of more than 40 licenses held by the explorer.

Glasgow-based packaging manufacturer Macfarlane Group was up 1.13p to 29.88p following this week's profits rise.