Australian shares rise due to supermarket stock gains

Australian shares closed slightly higher on Friday, boosted by strong performances from supermarket companies Woolworths and Coles. This increase put the S&P/ASX 200 index up 0.2% to finish at 7,931.20 points. The week overall was positive for the market, with a recovery of 1.8%, marking its best week of the year. Woolworths shares rose by 6.3%, while Coles climbed 4.9%. Investors were encouraged by a report from the competition watchdog that suggested there would be no significant changes affecting the earnings of these supermarket giants. Analysts noted that the report indicated supermarkets have been benefiting from higher profit margins amid rising prices. The consumer staples index saw a major boost, up 3.9%, which is its best daily gain in almost five years. This trend reflects how investors typically favor staples during economic downturns, as these companies tend to be more stable. However, healthcare stocks faced challenges, with the sector dropping by 0.7%. Major companies like CSL and Pro Medicus experienced losses of 0.5% and 6.5%, respectively. The financial sector also saw a slight decline, with Commonwealth Bank of Australia falling by 0.2%. Looking ahead, traders are anticipating the release of local inflation figures for February, which will impact upcoming monetary policy decisions. In neighboring New Zealand, the S&P/NZX 50 index rose by 0.5%, closing at 12,113.54 points.