Britain's FTSE retreats after Greek election results

* Blue-chip FTSE 100 index falls 0.3 percent

* Greek election results raise uncertainty

* Commodities shares slip as oil, metals fall

By Atul Prakash

LONDON, Jan 26 (Reuters) - Britain's top share index fell from a four-month high on Monday, led lower by commodity stocks, after Greek election results heightened uncertainty in the euro zone and raised the prospect of conflict between Greece and its international lenders.

The leader of the Syriza party, Alexis Tsipras, promised on Sunday that five years of austerity, "humiliation and suffering" imposed by international creditors were over after his party swept to victory in a snap election.

"... The implications of a 'Grexit' will continue to linger and may hamper further moves higher in the market," said Tom Robertson, a senior trader at Accendo Markets, referring to Greece's possible exit from the euro zone.

The FTSE 100, which hit a four-month high on Friday, was down 0.3 percent at 6,810.58 points by 0858 GMT. The index recorded its biggest weekly gain in three years last week, after the ECB announced a programme to buy government bonds and pump hundreds of billions into the stagnant euro zone economy.

Greece's ATG share index fell 3.7 percent. However, some analysts expected the events in Greece would have limited effect on equity markets overall.

"We think that it will have minimal impact," Gerard Lane, equity strategist at Shore Capital, said. "Longer term, debt restructurings will need to take place with haircuts imposed on those lenders that had exposure to the borrower."

Commodity shares dropped as prices of industrial metals and crude oil fell as the dollar strengthened in response to the Greek election. A stronger U.S. currency tends to make dollar-priced commodities expensive for other currency holders and generally reduces demand for them.

The UK Mining index fell 2.4 percent and the Oil and Gas index 1.6 percent. Shares (Berlin: DI6.BE - news) in Tullow Oil (LSE: TLW.L - news) , BG Group (LSE: BG.L - news) , BHP Billiton (NYSE: BBL - news) and Rio Tinto (Xetra: 855018 - news) fell 2.3 to 3.9 percent.

Glencore (Xetra: A1JAGV - news) fell 2.5 percent. Its Japanese peer Marubeni on Monday halved its net profit projection for this business year, booking losses on resource assets caused by falling prices for oil, copper and coal.

International Consolidated Airlines Group rose 3.3 percent to lead gains on the FTSE 100. The British Airways owner confirmed it had submitted an improved proposal to make an offer for Aer Lingus (Other OTC: AELGF - news) . (Reporting by Atul Prakash; Editing by Larry King)