Both the Nikkei and Topix indices were down in Tokyo on Thursday as investors expressed worry over uncertainty about the outcome of Sunday’s election by selling shares in companies that are domestically focused.

Although stocks are still up from their levels at the time elections were called, the past few days have seen declines as the election comes closer. According to analysts, the concerns revolve around the possibility that no party will gain a majority in the election, making it harder to agree on economic policy, which could be bad for equities. On the other hand, a clear victory for Prime Minister Junichiro Koizumi’s Liberal Democrats could spell an advantage for equities.

The Nikkei 225 fell 0.6 percent to 12,533.89 and the Topix index was down 0.5 percent to 1,278.90.

The banking sector managed to stay even on the day as data released by the Bank of Japan showed a rise in bank lending, the first such rise since records began seven years ago.

The real estate sector, however, fell 0.9 percent, while the securities sector also declined by 0.9 percent and wholesalers dropped 1 percent. The largest real estate company and the largest securities house in Japan each lost 1.1 percent on the day as real estate company Mitsui Fudostan ended the session at ¥1,489 and securities firm Nomura closed the day at ¥1,468.

Mayonnaise and salad dressing maker QP ended the day on a high note, gaining 3 percent to ¥992 after Daiwa Research Institute raised its rating from “3” to “2” and said the company would reach record high operating profits in the 2007-2008 fiscal year.