June 29 (Bloomberg) -- The U.K.'s benchmark stock index pared gains. Energy stocks including Shell Transport & Trading Co. and BP Plc dropped after oil prices slumped more than $2 a barrel yesterday.

British Airways Plc and BAA Plc paced rising stocks as oil's drop eased concerns about higher fuel costs and airfares.

The benchmark FTSE 100 Index added 4, or 0.1 percent, to 5094.4 at 10:48 a.m. in London, after earlier rising as much as 0.3 percent. The FTSE All-Share Index advanced 0.1 percent to 2549.99.

Shell Transport, which owns 40 percent of Royal Dutch/Shell Group, lost 1.3 percent to 538 pence. BP, Europe's largest oil company, slid 0.9 percent to 589.5 pence.

Oil fell the most in eight weeks yesterday, with most of the drop coming after European stock markets had closed, on speculation a report will show U.S. fuel inventories increased last week and gasoline demand slowed.

Crude oil for August delivery was little changed today at $58.31 a barrel. Oil futures reached a record $60.95 two days ago.

BAA, which operates airports including London's Heathrow, advanced 20.5, or 3.4 percent, to 619 pence. British Airways gained 3 pence, or 1.1 percent, to 268 pence.

ITV, Kingfisher

ITV Plc, the largest British commercial television broadcaster, jumped 5.25 pence, or 4.5 percent, to 121.25 pence. ITV and TV network Five will have their analog license fees cut by half this year as viewers switch to digital reception, the regulator Ofcom said.

Kingfisher Plc, the world's third-largest home-improvement retailer, gained 1.25 pence, or 0.5 percent, to 246 pence. The Financial Times said in its market report column, without saying where it got the information, that the company may be bought by Wolseley Plc.

Wolseley, a distributor of heating and plumbing systems, added 0.5 percent to 1174 pence. Wolseley doesn't comment on ``market speculation,'' said spokeswoman Nina Coad. Nigel Cope, a spokesman for London-based Kingfisher, declined to comment on the newspaper article.

Thor Mining Plc soared 75 pence, or 38 percent, to 2.75 pence. The company raised 1.4 million pounds in its initial public offering and started trading on the London Stock Exchange's Alternative Investment Market for smaller companies today. Thor's main project is a molybdenum-tungsten deposit in Australia's Northern Territory.

To contact the reporter of this story: Alice Ratcliffe in Zurich at aratcliffe1@bloomberg.net

Last Updated: June 29, 2005 06:02 EDT