FTSE falls; oils eclipse gains in banks, Kingfisher

* FTSE 100 down 0.7 pct

* Lower oil prices weigh on energy stocks

* Kingfisher rises on B&Q, margin cheer

* Banks rise, Swiss bank Credit Suisse beats forecasts

By Dominic Lau

LONDON, July 24 (Reuters) - Britain's top share index fell by midday on Thursday as lower oil prices weighed on heavyweight energy stocks, though a trading update boosted retailer Kingfisher (KGF.L: Quote, Profile, Research, Stock Buzz) and Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz) results lifted banks.

By 1043 GMT, the FTSE 100 .FTSE was down 36.2 points, or 0.7 percent, at 5,413.7, after rising 1.6 percent on Wednesday.

"It's good that the oil price, which is the big inflationary issue, is receding a little bit. There are all sort of geopolitical things that could flare at any point and send it back to upward track," said Tim Whitehead, head of portfolio services at Redmayne-Bentley.