By Johann M Cherian and Shashwat Chauhan
(Reuters) -Britain’s FTSE 100 index closed higher on Friday, with healthcare and energy stocks leading as oil prices rebounded and drugmaker GSK jumped, while data showed the British economy grew slightly in the first quarter of the year.
The blue-chip FTSE 100 rose 0.3%, snapping a three-day losing streak.
GSK added 1.8% after the drugmaker said a Canadian provincial Supreme Court dismissed a proposed class action against heartburn drug Zantac over increased cancer risk.
The broader healthcare sector rose 0.8%.
An Office for National Statistics report showed Britain’s economy grew sluggishly in early 2023, better than the shallow recession once expected, but an unexpectedly sharp drop in output in March underscored how fragile its recovery remains.
“The GDP (figure) today is not sending out a good signal,” said Giles Coghlan, chief market analyst at HYCM.
“Even though there’s some confusing input points that allow enough room to overlook this initial print, it will put more pressure on the prints to come.”
British banks recovered from Thursday’s losses, gaining 0.5% a day after the country’s central bank lifted borrowing costs.
Morgan Stanley and Bank of America raised their terminal rate forecasts, with both now expecting one more interest hike from the Bank of England next month.
Energy stocks rose 0.9%, as oil prices rebounded after Thursday’s fall. [O/R]
The mid-cap FTSE 250 stock index fell 0.4%.
Both London-based stock indexes end the week lower, with the FTSE 100 logging a third straight weekly drop, its longest streak of weekly losses in seven months.
Global growth concerns, particularly over China and the U.S., have recently weighed on internationally-focussed firms on the FTSE 100.
Among individual stocks, Beazley Plc jumped 3.0% on reporting a sharp jump in quarterly net premiums, lifting the non-life insurance sector up 1.2%.
(Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Rashmi Aich and Alex Richardson)
