Top FTSE 350 Risers Last Month

UK stocks have been buoyed lately amid a search for valuations, while BOE monetary policy is seen as more easing than its peers, but some stocks have rocketed ahead of the average:

Ten Best Performing FTSE 350 Stocks Last Month

1. Hays (HAS) +93%
2. Michael Page (PAGE) +77%
3. Rotork (ROR) +65%
4. CMC Markets (CMCX) +53%
5. Funding Circle (FCH) +49%
6. Mitie (MTO) +39%
7. Victrex (VCT) +36%
8. Greencore (GNC) +31%
9. Mondi (MNDI) +28%
10. WPP (WPP) +27%

Record FTSE 100 On BOE, Corporate Results

British stocks have been buoyed this season amid generally solid reports so far, which helped the premier index touch a new intraday record high on Thursday. The general market rotation searching for lower valuations has found fertile ground in the UK, as the FTSE 350 has a much lower tech weighting, avoiding the overall downward trend. The "big three" central banks held rate decisions over the last two weeks, with the main market takeaway that the ECB and Fed are likely to hike later this year. Meanwhile, the BOE is predicted to stay on hold, which could relatively help UK stocks in the second half. British equities were also under pressure last month amid the change in leadership at No. 10, but with the new Burnham government not giving any major surprises to the market, political uncertainty is also somewhat reduced. Some stocks have surged much faster than their peers, but generally reflect market trends: strong trading results, a rotation into cyclicals, and rebounding from distressed levels. The market backdrop has generally helped financials and industrials that could benefit from relatively easier BOE monetary policy. Here's what's behind some of the biggest FTSE 350 risers last month:

Hays and Michael Page Ride Hiring Rebound

The top performers on the list are not there so much because of extraordinary results, but because the market has priced in such a big hiring slump that even modest improvement produces outsized gains. Michael Page is down over 80% since its 2023 high, while Hays is down around 70% in the same period. Both boosted decent trading updates last month, leading to hope that the jobs market might finally be bottoming out. Both still had negative sales growth, but it wasn't as bad as feared, and they said that profits are expected to improve in the second half. If that happens, they have a long way to recover to prior heights, meaning they could continue to garner investor interest.

Rotork and Mitie Surge on Takeover Offers

Rotork jumped after Swiss industrial group ABB agreed to acquire the firm at 503p per share in a $5.5 billion all-cash deal. The price represented a 60% premium, and shareholders would still be entitled to the June dividend. Sticking with the trend of UK firms being bought up and taken off the London Stock Exchange, Mitie agreed to be acquired by US private equity firm OCS for 221.6p per share, including the dividend, a 45% premium over the price before the offer.

Earnings support Victrex and Greencore

Victrex posted a solid Q3 trading update early in the month, with revenue rising 18% and sales volumes up 17%, led by aerospace and electronics demand. The company also affirmed its guidance for the year, despite disruptions in the aviation industry, as its medical sales were stabilising. Analysts noted progress in its cost-saving program as an explanation for its strong share pop. Greencore also posted a positive Q3 trading update, with sales rising 3.2% with both volume and margin improvements as it continues to integrate Bakkavor. However, it was the company's boost to its guidance that caught investor attention, after management said it expected operating profit to rise to £234-242 million, exceeding market expectations.