By Sudip Kar-Gupta
LONDON (Reuters) - Britain's top share index slipped off record highs on Thursday, with media group Pearson (L:PSON) underperforming after a newspaper report of a glitch in a lucrative contract.
The blue-chip FTSE 100 index (FTSE) initially rose to an all-time high of 7,119.35 points but then edged back and closed down 0.5 percent at 7,060.45 points.
Pearson fell 4 percent, the worst performer on the FTSE, after the Los Angeles Times reported that the Los Angeles Unified School District was seeking a refund from Apple (O:AAPL) over a bungled $1.3 billion effort to supply students with iPads with curriculum material from Pearson.
Diageo (L:DGE), the world's largest spirits maker, fell 3.6 percent after reporting lower quarterly sales.
The FTSE has hit a series of record highs this month despite political uncertainty before Britain's general election on May 7, which has hit sterling
Opinion polls put the governing Conservatives neck-and-neck with the opposition Labour party, and the Scottish National Party may emerge as the third-biggest, raising prospects of a hung parliament.
The Conservatives have also promised a referendum on Britain's membership of the European Union by the end of 2017.
Some traders have said the FTSE managed to rise against that backdrop since the weakness in sterling could help British exporters, but Beaufort Securities' sales trader Basil Petrides was more cautious.
"I'm not willing to buy into the market at these levels with the election just around the corner," he said.
UNILEVER, GOLD MINERS RISE
Consumer goods group Unilever (L:ULVR) rose 2.6 percent after better-than-expected sales.
Precious metal miners Randgold (L:RRS) and Fresnillo (L:FRES) also advanced as gold extended gains after sluggish U.S. data weakened the dollar. [GOL/]
InterTrader's chief market strategist Steve Ruffley said the FTSE could rise to 7,300 points over the coming month.
"The outcome will most likely be a Conservative coalition. Immediately after the election, we will probably sell off but any major sell-off will be bought back very quickly."