Britain's top equity index slipped towards a three-week low on Monday, with UK election jitters and higher bond yields putting pressure on sectors such as utilities and properties.

Companies like Centrica, United Utilities, Barratt Development, Persimmon and Taylor Wimpey fell 0.6 to 1.6 percent, dragging the blue-chip FTSE 100 index down 0.4 percent to 6,934.23 points by 0827 GMT. It hit a tree-week low on Thursday.

U.S. Treasury yields rose in April for their second monthly increase since January due to a heavy bond supply and less pessimism about Europe that spurred heavy selling in German Bunds and other low-risk government debt.

Analysts said utilities and property stocks were also getting sold due to lingering uncertainty about the result of a closely fought UK parliamentary election on May 7.

The ruling Conservatives and opposition Labour Party have been neck-and-neck in most polls since the start of the year, but seven of the 10 pollsters covering the election have the Conservatives ahead by varying degrees.

The Labour Party says it would ensure cheaper energy costs for consumers by the end of this year if it wins the election, promising it would immediately empower the energy regulator to force prices down.

"An absence of European markets, given the May Day holiday, has left the UK market with little direction and light volumes. Uncertainty ahead of the UK election appears to be dampening sentiment, particularly with regards to the property and utility stocks," Keith Bowman, analyst at Hargreaves Lansdown, said.

Some analysts said that housebuilders were also getting hurt because planning applications were not being approved ahead of the election and could be deferred for longer. It was causing a slowdown in the market and prompting investors to take their money elsewhere for better returns, they added. (Reuters)

Source: www.businessworld.ie