The FTSE 350 index finished a volatile third quarter to September 2022 down 4.5% amid continuing worries over stubbornly high inflation and rising rates as well as geopolitical instability.

A slew of profit warnings, notably from consumer stocks, and a sell-off following the mini-Budget, capped off a testing quarter for investors.

Stocks that performed strongly ranged from companies receiving bids to beneficiaries of surging energy prices and businesses that confounded the doom and gloom by reporting positive operational performances.

The best performing stock was Micro Focus (MCRO), up 86% after it agreed a buyout by Canadian software giant OpenText. Hot on its heels with a 74.5% gain was inter-dealer broker and volatile markets beneficiary TP Icap (TCAP), also boosted by reports institutional investors are pushing for a sale of high-margin data division Parameta, which could fetch as much as £1.5 billion, and a subsequent return of capital.

Also flying high were fast-growing payments play Network International (NETW) and Bank of Georgia (BGEO), up more than 60% and 50% respectively with support from strong results, while promotional products seller 4Imprint (FOUR) rose 46% as its sales reached record levels.

Among the index’s worst performers were chemicals firm Synthomer (SYNT) and meat, seafood and vegetarian products packer Hilton Food (HFG), which dived after profit warnings. Also leaving a sour taste was Ocado (OCDO), off 39.5% after Ocado Retail, its online grocery joint venture with Marks & Spencer (MKS), warned that ‘trading down’ by consumers meant full-year financial targets would be missed.

Looking at all UK-listed companies, stellar performers included commercial aircraft leasing concern Avation (AVAP), which soared 650% as the aviation sector’s post-pandemic recovery continued and the company signalled its return to profitability and said it had materially reduced its debt.

Diurnal (DNL:AIM) investors were in the money after the hormone-deficiency drug specialist agreed a premium-priced takeover from US-based neuroscience biopharmaceutical company Neurocrine, while RPS’ (RPS) shares rocketed 129% higher after Tetra Tech gazumped WSP in a takeover bid for the consulting engineer.

Major third quarter casualties included online sofa seller Made.com (MADE), which sank 92.7% in Q3 after revealing a desperate need for funding and hanging up the ‘for sale’ sign and embattled Cineworld (CINE) which is working through the Chapter 11 bankruptcy process in the US.

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