Rolls-Royce loss lies heavy on FTSE 100

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* Rolls-Royce posts record reported loss

* TUI jumps on improved results

By Kit Rees

LONDON, Feb 14 (Reuters) - Britain's top share index tradedflat on Tuesday, pausing after a five-day winning streak asRolls-Royce tumbled after reporting a record loss.

The blue chip FTSE 100 index was flat in percentageterms at 7,279.54 points by 0946 GMT in choppy trade, having hitits highest level since mid-January in the previous session.

Shares in engineering firm Rolls-Royce dropped 4.9percent after the company announced a 4.6 billion pound ($5.8billion) loss, hit by a fine to settle bribery charges and by losses on its currency hedges.

The stock was the most actively traded on the FTSE 100, withmore than 87 percent of its 30-day average volume traded in thefirst hour of the session. Fellow defence firm BAE Systems also fell nearly 2 percent.

Analysts cited concerns about Rolls-Royce's outlook asputting pressure on the shares.

"Some investors may also have a restive reaction to therather dry and narrow outlook comments, projecting only 'modestperformance improvements' and similar free cash flow generationas in 2016," said Ken Odeluga, market analyst at City Index.

Improved earnings, however, buoyed shares in travel firm TUI, which jumped 4.8 percent and was on track for its bestday since early July 2016.

TUI reported a narrower loss for the first quarter of 66.7million euros, a 17 percent improvement on last year, and saidit aimed to start offering holidays to customers from countriessuch as China, India, Spain and Italy.

Analysts cited the sale of its specialist holiday armTravelopia to KKR in a $407 million deal as a furtherboost to its shares.

"While we have reservations about the outlook for sourcemarkets, we are attracted to the increased diversification andthe steps TUI that has taken to drive growth elsewhere in thebusiness," analysts at Berenberg said in a note.

Among smaller companies, a solid set of results boostedshares in Acacia Mining, which rallied 6.7 percent andwas the biggest mid cap gainer.

The gold miner said that production in 2017 would rise 40percent, and proposed more than doubling its dividend. (Reporting by Kit Rees; Editing by Mark Trevelyan)