LONDON MARKETS: Prudential Shares Rise In London After Dividend Lift

By Carla Mozee, MarketWatch

Hargreaves Lansdown hurt on rating view

LONDON (MarketWatch) -- Shares of Prudential PLC outperformed the broader U.K. stock market Tuesday as the insurer said it will increase a dividend.

The FTSE 100 index weaved between small gains and losses, recently slipping 2 points to 6,631.31. It climbed 1% on Monday as geopolitical tensions eased.

But a 1.8% rise for Prudential shares put them at the top of the equity benchmark. The insurer plans to raise its 2014 interim dividend by 15% to 11.19 pence (18 cents) a share, from the same period a year ago. Prudential's first-half operating profit increased 17% as its performance improved across all its key financial measures.

The interim dividend is payable Sept. 25 for certain shareholders and in early October for others.

Meanwhile, Hargreaves Lansdown dropped 2.7%, leading FTSE decliners. UBS started coverage of the investment services provider with a sell rating, saying the market is significantly overestimating flow potential from Hargreaves's flagship Vantage investment and funds platform.

Oil shares tracked a turn lower in oil prices, coming after the International Energy Agency reduced its 2014 forecast for world oil demand. Royal Dutch Shell shares fell 0.9%, BG Group gave up 0.6% and BP slipped 0.1%.

Off the benchmark, Ladbrokes gained 2.1% after the betting and gaming services company said it remains well positioned to drive growth in the second half of the year, despite a fall in net profit.

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