By Barbara Kollmeyer, MarketWatch

MADRID (MarketWatch) -- The U.K.'s benchmark stock index finished higher on Monday, with Aberdeen Asset Management PLC leading gainers after the investment manager reported strong first-half results.

The FTSE 100 index rose 0.5% to end at 6,458.02.

Shares of Aberdeen Asset Management surged 8% after the company said profit and assets under management rose for the half year ended March 31. The company also said, though, that it remains cautious on its outlook.

Anglo-Dutch publisher Reed Elsevier PLC fell 1.8% after Citigroup downgraded the company to neutral from buy. Citigroup said the shares have rallied 53% since July 2012 and 21% year-to-date.

Advertising company WPP was also the subject of a broker downgrade, as HSBC cut the stock to neutral from overweight, with the analysts saying they see limited scope for further re-rating. It is the first time HSBC has downgraded WPP in three years. Shares of WPP fell 0.5%.

Lloyds Banking Group PLC (LYG) rose 1.1% after announcing it will sell its Spanish retail-banking operations to Banco Sabadell SA , in a cash and stock transaction worth up to EUR104 million ($136 million).

Resource stocks were also on the rise, keeping pace with higher gold and oil prices. Eurasian Natural Resources Corp. rose 2% and Randgold Resources PLC added 1.1%.

Royal Dutch Shell PLC (RDSA) rose 1.2%. Shares of BG Group PLC gained 1.7%.

Away from the main index, shares of Balfour Beatty PLC slumped nearly 10% after the international infrastructure group warned its U.K. construction unit will deliver "significantly lower profits from operations for 2013" than management had anticipated in March.

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