Australia’s S&P/ASX 200 rose 1.1% to a more than seven-week high on Friday as banks and energy stocks rallied, while supermarket operator Coles plunged over 10% after quarterly revenue missed estimates, dragging the consumer staples sector lower.
The benchmark index rose to 8,992.60, supported by gains in the Big Four banks, which climbed 0.9% to 1.2%, while energy stocks gained as much as 2.2% as oil prices remained above $100 a barrel. Financial stocks rose 1.3% ahead of results from Australia’s major lenders next week.
Coles was the clear exception. Its shares fell more than 12% at one stage on Friday to around $20.66-$20.75, putting it on track for its worst session on record and its lowest close in five months, after its first-quarter trading update disappointed investors.
What Coles reported — and what worried investors
Coles reported group sales revenue of $11.2 billion for the first quarter of fiscal 2027, up 2.2%. Its supermarket business did better, with sales up 3.6% to $10.3 billion and comparable sales growth of 2.7% in the 13 weeks through September 27 — slowing from 4.6% a year earlier.
Online supermarket sales jumped 22.9%, with e-commerce penetration reaching 15.7%, but that was not enough to offset the warning that mattered most to the market. Coles said supermarket sales growth had moderated during the first four weeks of the second quarter as competition increased, and warned that higher fuel prices would lift operating costs in the first half.
Combined with additional investment in customer value, Coles forecast broadly flat first-half Supermarkets earnings before interest and tax (EBIT), at about $1.23 billion — against analyst estimates of about $1.32 billion, a miss of roughly 7%. Citi noted the guidance fell short of its own forecast of 8% growth in first-half EBIT and consensus expectations of a 6% rise.
Losing ground to Woolworths
The result sharpened the contrast with chief rival Woolworths, which earlier in the week reported Australian Food sales growth of 6.9%, with comparable sales up 6.1%, across the 14 weeks through October 4. Coles appears to be losing sales momentum relative to Woolworths, analysts noted, as price investment and competitor promotions weigh on its margins.
Consumer staples fell as much as 4% during the session before paring losses. By midday, the broader market was still firmly higher: the S&P/ASX 200 was up 94.3 points, or 1.06%, to 8,986.4, with the broader All Ordinaries up 0.99% to 9,101.8, putting the market on track for its best weekly performance since July.
What investors watch next
Investors now await the Reserve Bank of Australia’s November 3 policy decision, with markets pricing roughly a 43% chance of a rate hike. Next week also brings results from the major banks — Westpac on Monday, NAB on Thursday and Macquarie on Friday — which will test whether Friday’s bank rally holds.
For Coles, the question is whether the flat first-half earnings outlook proves conservative or the start of a longer squeeze from fuel costs, promotions and a resurgent Woolworths. Analysts signalled deep cuts to their forecasts after Friday’s update.
Frequently asked questions
Why did Coles shares fall? Its first-quarter sales missed estimates and it forecast broadly flat first-half Supermarkets EBIT of about $1.23 billion, below the roughly $1.32 billion analysts expected, citing higher fuel costs and price investment.
How did the wider market perform? The S&P/ASX 200 rose 1.1% to a more than seven-week high, led by banks and energy stocks.
What is next for Australian markets? The Reserve Bank of Australia’s November 3 decision, and earnings from Westpac, NAB and Macquarie next week.
Sources
Reuters via TradingView, “Australian shares hit over 7-week high as banks, energy stocks gain; Coles tumbles” (October 30, 2026); Dow Jones via Morningstar, “Coles’s Share Price on Worst Close in Five Months After Sales Disappoint” (October 30, 2026); MarketIndex, “ASX 200 Live Today — Friday, 30th October” (October 30, 2026); AAP, “Aussie shares track strong weekly finish, Coles tumbles” (October 30, 2026).
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