By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Shares of BP PLC helped push the U.K.'s FTSE 100 higher on Tuesday after the oil giant raised its dividend.

The benchmark stock index added 0.6% to 6,399.01, setting it on track to break a two-session losing streak. On Monday, the index dropped 0.4%, with banks sliding after European stress-test results.

BP (BP) posted one of the biggest gains on Tuesday, up 1.1%, after the energy major said it will raise dividends for the third quarter to 10 cents, a 5.3% increase on the year. The company also said sanctions against Russia because of Ukraine have had no material impact on the company, although it has felt a squeeze from the falling ruble.

BG Group PLC gave up 1.4%. The energy major said profit dropped 29% in the third quarter and its output declined further amid higher costs and lower global hydrocarbon prices.

Lloyds Banking Group PLC (LYG) dropped 3% after the bank took another 900-million-pound ($1.45 billion) hit to cover compensation for mis-selling loan insurance, known as payment protection insurance, or PPI. On a more upbeat note, the lender reported a rise in third-quarter underlying profit.

Standard Chartered PLC slid 9.5%, putting it on track for its lowest close in more than five years. The bank said its operating profit fell 16% in the third quarter, partly because of higher impairment losses.

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