Savills shares soared yesterday after it released a trading update which said that its performance to the end of last year “will be at the upper end of the board’s expectations”.
The trading update also referred to a strong Boris bounce, saying: “The clear outcome of the general election prompted a strong close to the year as confidence to transact returned to the market.”
While Savills is highly diversified and operates internationally, the UK is a key market.
It described its performance here as “excellent”.
Another key market is Hong Kong, where political unrest has “severely reduced the volume of trading activity from mid-year and continued to do so”.
Nevertheless, in both the UK and Hong Kong, Savills reported increasing market share despite lower volumes of trading.
It said of the UK that Savills “performed well across all business lines, latterly benefiting from improved investor sentiment in both commercial and residential markets.
“Our residential business continued to outperform the overall market conditions, in particular taking share in the core London market.”
Yesterday’s trading update said that the improved sentiment in the UK market is set to continue, although it did suggest that “some caution may remain until the full impact of Brexit is better understood”.
Savills is due to report its 2019 full-year results on March 12.
In trading yesterday, Savills shares shot up by over 7%, closing at 1,232p.