UPDATE 1-S.African grocers cleared in price-fixing probe

* No evidence of price fixing

* Food retailers index up 0.55 pct

(Adds details, background)

JOHANNESBURG, Jan 27 (Reuters) - South African food retailers have been cleared in a price-fixing probe launched by the country's competition watchdog nearly two years ago.

"The investigation revealed that there was insufficient evidence to show contraventions," the Competition Commission said on Thursday.

The commission had been investigating Pick n Pay (PIKJ.J), Shoprite (SHPJ.J), Massmart (MSMJ.J), Woolworths (WHLJ.J) and Spar (SPPJ.J) since June 2009.

The antitrust concerns included that the chains fixed the price of food items and placed onerous demands on suppliers.

The JSE food retailers index .JFOOR gained 0.55 percent as of 1200MT, in line with the broader All-share index .JALSH. (Reporting by Tiisetso Motsoeneng)