The Australian share market declined for second straight day on Thursday, 28 May 2015, as risk off selling triggered after the release of worse than expected capital expenditure figures, with material and resource-related stocks leading downfall. The benchmark S&P/ASX 200 Index declined 12.20 points, or 0.21%, to 5713.10, while the broader All Ordinaries Index fell 9.60 points, or 0.17%, to 5714.60. Market turnover was relatively healthy, with 1.62 billion shares changing hands worth of A$3.41 billion.
The Australian Bureau of Statistics business investment data released on Thursday showed companies expect to cut investment in the fiscal year starting July 1 by 24.6% compared with their expectations, a year ago, for the previous fiscal year, as the downturn in mining accelerates and creates a stiff headwind for growth. Meanwhile, actual business investment in buildings and equipment fell by 4.4% in the first quarter from the final three months of 2014. Investment in the mining sector in the coming fiscal year is estimated to be 34.9% lower than the forecast, a year ago, for the current fiscal year.
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