LONDON: Britain's top share index climbed higher on Tuesday after resuming trade following a long weekend, with energy stocks leading the market higher tracking a rise in crude oil prices.
However, a survey showing growth in Britain's construction industry slowed sharply in April and uncertainty about the outcome of this week's parliamentary election prompted investors to avoid strong bets.
The UK Oil and Gas index rose 1.2 percent, the top sectoral gainer, as crude oil prices advanced to trade near its 2015 highs after protesters shut down the eastern Libyan oil port of Zueitina, hampering exports.
However, analysts remained sceptical about the continuation of a rally in energy stocks just on the back of oil price moves.
"It is good that oil prices are rebounding from their lowest, but it's far too early to say that there's a definitive recovery," Admiral Markets' analyst Darren Sinden said.
The blue-chip FTSE 100 index was up 0.4 percent at 7,010.71 points by 1050 GMT.
The British stock market was closed on Monday for a public holiday.
The index gave up some early gains after a survey showing the monthly Markit/CIPS UK construction purchasing managers' index (PMI) fell to 54.2 last month, its lowest level in 22 months and down from 57.8 in March.
The index was below all forecasts in a Reuters poll.
Some investors fretted over the potential of further political uncertainty from this week's British general election, as the cost of protection against big swings in sterling in the next week spiked to its highest since the previous vote in 2010. However, just two days before Britons vote in the closest-fought electoral race in recent history, stock markets remained relatively calm, with volatility on the FTSE 100, a crude measure of investor concern, dropping 5 percent.
According to a Populus poll, British Prime Minister David Cameron's Conservatives are level with the opposition Labour Party.
Among other significant movers, shares in Europe's biggest bank HSBC fell 2 percent despite beating forecasts with a 4 percent rise in first-quarter pretax profit.
"The bank continues to flex its financial muscles with a reassuring update," Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said.
"However, concerns inevitably remain.
The scope of any further regulatory fines remains unclear, the increased cost of doing business especially in the compliance area has once more received air time, whilst the potential relocation of the business provides some uncertainty, even though it could prove to be for the longer term good of the business."
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