May 12 (Reuters) - The FTSE 100 index rose on Friday as investors were relieved after data showed the UK economy grew slightly in the first three months of this year, with insurer Beazley topping gains following upbeat quarterly results.
An Office for National Statistics report showed the UK economy grew 0.1% expected in the first quarter of 2023, despite a 0.3% contraction in March on a monthly basis.
The pound added 0.2% against the U.S. dollar.
"The fact that the UK managed to eke out a growth is still woeful with many issues still impacting the economy," said Danni Hewson, head of financial analysis at AJ Bell.
"If inflation does not fall, and if industrial action continues on, there is still a possibility that the economy could see some kind of a recession."
The blue-chip FTSE 100 (.FTSE) rose 0.4%, boosted by a 0.4% gain in banks (.FTNMX404010), a day after the central bank lifted borrowing costs. The mid-cap FTSE 250 (.FTMC) added 0.1% by 0826 GMT.
The indexes are, however, set to end the week lower, with the FTSE 100 set for a third straight weekly drop, its longest streak of weekly losses in seven months.
Global growth concerns, particularly out of China and the U.S., have recently weighed on internationally-focussed firms on the FTSE 100.
Beazley Plc (BEZG.L) rose 4.8% on reporting a sharp jump in quarterly net premiums, lifting the nonlife insurance sector (.FTNMX303020) up 2.1%.
THG Plc (THG.L) slumped 6.2% after the retailer said it had terminated talks with Apollo Global Management (APO.N) for a buyout deal.
GSK Plc (GSK.L) surged 1.7% as the drug maker said a Canadian Supreme Court dismissed a proposed class action against heartburn drug Zantac over increased cancer risk. The pharmaceuticals sector (.FTNMX201030) added 0.7%.
Diageo PLC (DGE.L) lost 1.6% after brokerage Jefferies turned bearish on the beverage maker.
