* FTSE 100 down 0.6 pct in mid-session
* Index tracks Wall Street's sell-off
* Some traders cite concern over FTSE valuations
By Sudip Kar-Gupta
LONDON, April 7 Britain's top equity index fell
on Monday, retreating from a three-week high as a slide on Wall
Street on Friday and concern about valuations weighed on the UK
The blue-chip FTSE 100 index, which rose 0.7 percent
on Friday to reach its highest in around three weeks, fell back
by 0.6 percent, or 38.60 points, to 6,656.95 points in
"It's all being driven by the sell-off we saw on Wall
Street," said Prime Wealth Group senior trader Dafydd Davies.
Benchmark U.S. equity indexes fell around 1 percent on Friday.
Concern that corporate earnings were not strong enough to
justify the ratings of companies on the FTSE 100 also weighed on
stocks. The FTSE 100 is trading on a 12-month forward
price/earnings ratio of 13.2 times, compared with a five-year
average of 11 times, according to Thomson Reuters Datastream.
"There are question marks about valuations," Brown Shipley
fund manager John Smith said. "This year, stocks have to deliver
earnings growth to justify the rating."
The FTSE 100 rose 14.4 percent in 2013 to post its best
annual gain since 2009, and the index reached a peak of 6,867
points in January this year, its best level since early 2000.
It has since slipped back, after a slump in emerging markets
and tensions grew between Russia and Western powers over
Ukraine. Smith said he expects the market to remain trapped in
that range in the near-term.
"There is not enough belief at this point in time to push
the market higher," he said.
(Additional reporting by Tricia Wright; Editing by Larry King)