By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Shares of ARM Holdings PLC led U.K. stocks higher on Tuesday, after a well-received earnings report, while Associated British Foods PLC gained after declaring an increase in dividends.

The FTSE 100 index gained 0.4% to 6,306.02.

ARM Holdings (ARMHY) rallied 7%, after the chip maker posted a better-than-expected 28% rise in first-quarter revenue, boosted by strong demand for its microchip designs. Adjusted pretax profit jumped 44%, beating expectations of a 25% rise.

Shares of AB Foods added 1.8%, after the food and clothing company reported a 26% rise in first-half pretax profit and declared a 10% increase in interim dividends.

Rolls-Royce Holdings PLC picked up 1.2%. The power-systems developer said it has agreed to sell its shareholding and interest in the RTM322 helicopter-engine program to Turbomeca, which is part of engineering group Safran SA .

Shares of SABMiller PLC gained 0.9%, after the brewer said Executive Chairman Graham Mackay has been diagnosed with a brain tumor and therefore has accelerated the planned promotion of Alan Clark to chief executive with immediate effect.

On a more downbeat note, mining firms posted losses, tracking metals prices lower.

Shares of Fresnillo PLC dropped 2.9%, Randgold Resources Ltd. fell 2.1% and Anglo American PLC shaved off 1.6%.

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Associated British Foods (PK) (USOTC:ASBFY)
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