Share index to break 5000 but capex figures worst for a decade The nation's benchmark share index is poised to burst through the 5000-point mark for the first time since May. THE nation's benchmark share index is poised to burst through the 5000-point mark for the first time since May, despite fears corporate Australia is dramatically cutting investment spending. After its fourth-straight day of gains, the ASX 200 has closed just 27 points shy of the mark. But it comes as Standard & Poor's warns corporate capital expenditure will tumble 12 per cent this year. The global ratings agency says that after two years of strong investment growth, Australia should brace for an "abrupt reversal." Led by a rally among resources stocks, the ASX 200 index pierced the pivotal 5000 mark at 10.30am yesterday. It lost some ground later amid renewed concerns about the growth outlook for China, but still closed at a six-week high of 4973.9 points. The market slipped after Chinese finance minister Lou Jiwei said the nation's economy was now likely to grow 7 per cent this year - below the previous forecast of 7.5 per cent. Analysts said that while the development was a dampener, the slower growth rate had been largely anticipated by investors. CommSec economist Savanth Sebastian said markets continued to be buoyed by improved investor sentiment and positive leads from Wall Street. "It's been a broad-based rally," Mr Sebastian said. There's been a bit of bargain hunting taking place, and it really is the miners that are leading the charge. Resources giants BHP Billiton, Rio Tinto and Fortescue Metals all posted strong gains today. But while the miners provided a welcome short-term boost, the longer-term outlook was less rosy, according to Standard and Poor's. A cut in mining investment would put a halt on two years of capital expenditure growth, the agency warned yesterday. It said the resulting downturn in investment was forecast to be steeper than it was during the financial crisis. "The scaling back of mining-related investment is projected to bring an abrupt reversal of the very strong capex growth seen in the past two years," Standard and Poor's credit analyst Terry Chan said. The estimated decline in spending would be the worst capex growth figures for Australia in the 10-year period we have data for, exceeding the downturn that followed the global financial crisis. The agency forecasts that investment by Australian companies outside the financial sector could fall 12 per cent in the year to December and more than 20 per cent next year. This would reverse growth of more than 20 per cent in each of the previous two years, researchers said. The study, based on an analysis of 2000 global non-financial companies, found the investment outlook was gloomy. "The results of the survey suggest that global capex cycle is stalling and may be weak for some years to come," Mr Chan said.