It has been a tough first quarter of 2018 for the markets, spooked by the prospect of interest rate hikes, geo-political tensions and the threat of a trade war between the US and China.
AJ Bell investment director Russ Mould says: 'Data suggests the FTSE 100 is the worst performing major stock market index in the first quarter of 2018, assuming no major changes to its performance today.
WORST START SINCE 2009
'The FTSE 100 looks on track to have fallen by 8.3% in the first quarter of 2018. That represents the worst first three months of a calendar year since 2009 which saw an 11% decline.
'Over the same period this year, Japan's Nikkei 225 index is down just over 7% and Hong Kong's Hang Seng index is showing a small gain just below 1%. The biggest risers look set to be Russia's Trading System index (up 7.3%) and Brazil's Bovespa index which at the time of writing was up 11.4% so far this quarter.'
But which FTSE 350 stocks have been the best and worst performers in the first three months of the year and what conclusions can we draw?
BEST PERFORMERS Q1 2018
| Company | EPIC | YTD performance |
| NEX Group | NXG | 59.60% |
| Fenner | FENR | 52.50% |
| Fidessa | FDSA | 45.40% |
| Ocado | OCDO | 35.70% |
| GKN | GKN | 33.40% |
| Sky | SKY | 30.00% |
| Softcat | SCT | 29.90% |
| Sirius Minerals | SXX | 29.10% |
| Dechra Pharmaceuticals | DPH | 27.20% |
| Source: SharePad, 29 March 2018 |
The best performers, detailed above, are dominated by takeover action. Industrial conveyer belt maker Fenner (FENR) subject to a £1.2bn from French tyre manufacturer Michelin, Sky (SKY) seeing a rival bid of £22.1bn from Comcast to the existing offer from 21st Century Fox, IT firm Fidessa agreeing to a £35.67 per share approach from Swiss peer Temenos and NEX Group (NXG) accepting a takeover bid from CME.
GKN (GKN) shareholders are set to vote later today on a bid from industrial buyout specialist Melrose (MRO).
Companies which have made significant gains under their own steam, include online groceries business Ocado (OCDO) which secured long-awaited international deals.
Investors remain fans of the growth on offer at IT outfit Softcat (SCT) and animal medicines firm Dechra Pharmaceuticals (DPH), while Sirius Minerals (SXX) has made progress with its potash project in Yorkshire.
WORST PERFORMERS Q1 2018
| Company | EPIC | YTD performance |
| Inmarsat | ISAT | -25.30% |
| Galliford Try | GFRD | -26.00% |
| FirstGroup | FGP | -26.70% |
| PZ Cussons | PZC | -28.60% |
| Aveva* | AVV | -31.10% |
| Card Factory | CARD | -35.20% |
| Alfa Financial Software | ALFA | -35.80% |
| Greencore | GNC | -42.90% |
| Micro Focus | MCRO | -60.80% |
| Capita | CPI | -63.50% |
| Source: SharePad, 29 March 2018 |
*Aveva rebased post cash return
The worst performers are a mixture of stocks on high valuations which have disappointed the market like Micro Focus (MCRO) and Alfa Financial (ALFA) as well outsourcers Galliford Try (GFRD) and Capita (CPI) which have been a victim of their own weak performance and increasing scepticism towards this space due to the collapse of Carillion in January.
The market appears very unforgiving towards expensive stocks which fail to live up to growth expectations, a trend investors should be watchful of in the remainder of the year.
