Australian shares rise due to supermarket stock gains

Australian shares rose slightly on Friday, driven by gains in supermarket companies Woolworths and Coles. Investors were pleased with news that no significant reform proposals would affect company earnings. The S&P/ASX 200 index closed 0.2% higher at 7,931.20 points. This came after a challenging four weeks when the index dropped about 9%. However, this week marked a turnaround, as the index recovered 1.8%, the best performance so far this year. Woolworths shares jumped 6.3%, while Coles shares increased by 4.9%. Analysts noted that the increase followed a report from Australia’s competition watchdog. The report found that the leading supermarkets were enjoying higher profit margins despite rising shelf prices. Citi analysts described the regulator's findings as "benign," suggesting that the recommendations would not significantly impact supermarket earnings. This positive outlook contributed to a 3.9% rise in the consumer staples index, marking its best daily gain since April 2020.