LONDON MARKETS: Prudential Shares Rise In Flat Day For FTSE

By Carla Mozee, MarketWatch

Hargreaves Lansdown falls 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.

After weaving between small gains and losses, the FTSE 100 index finished less than 1 point lower at 6,632.42. It climbed 1% on Monday as geopolitical tensions eased.

But a 2.2% rise for Prudential shares put them near the top of the benchmark, just behind a 3.1% advance for retailer Sports Direct International .

Prudential 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 2.9%, 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 1%, BG Group gave up 0.4% and BP ended flat.

Off the benchmark, Ladbrokes shares reversed course and ended 0.5% lower. The shares had been up more than 5% intraday 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.

On the broader European market, the Stoxx Europe 600 shed 0.2%.

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