Shares in software group Sage, the UK's biggest software company, rose to the top of the FTSE 100 Tuesday as the company said it expected its results to be in line with expectations.
Sage shares rose 4.5 percent after the company, which develops software for small and medium-sized companies, said market conditions in the quarter ended in June had remained "challenging but largely unchanged" while cash generation was strong.
Royal Bank of Scotland was also among the top gainers, with shares trading 2.7 percent up after a report in the Times newspaper said it may pull out of a government scheme to lend 1 billion pounds ($1.6 billion) to stricken wind-farm developers.
Lloyds Banking Group shares also rose after it announced that it appointed Win Bischoff, the former chairman of Citigroup, as its new chairman after the market closed on Monday.
Shares in consumer packaging group Rexam fell 4.3 percent after UBS cut its target price to 290p from 400p on worries over its cash flow.