The S&P/ASX200 index closed down 5.61 points or 0.13% to 4337.9, while the All Ordinaries followed suit, shedding 9.46 points to 4422.

“With all good news being factored in, we are coming to a tougher period and markets are vulnerable,”Bloomberg quoted Sydney-based AMP Capital investment strategy head Shane Oliver.

Shares in Leighton sank 7.4% or $A1.74 to $22.01 after its German parent Hochtief AG cut profits forecasts for the 2012 financial year after wet weather and lower-than-expected productivity raised costs.

Reports also emerged that European governments were preparing for a one-year increase in the ceiling on rescue aid to €940 billion ($A1.2 trillion) to keep the debt crisis at bay, according to a draft statement written for finance ministers.

Bloomberg quoted a European official in Brussels who said the euro-area financial chiefs would probably decide at a meeting in Copenhagen tomorrow to run the €500 billion permanent European Stability Mechanism alongside the €200 billion committed by the temporary fund.

Beyond that, they are also set to allow the temporary fund’s unused €240 billion to be tapped until mid-2013 “in exceptional circumstances following a unanimous decision of euro-area heads of state or government notably in case the ESM capacity would prove insufficient”, according to the draft dated March 23 and obtained by Bloomberg News.

The boost to the war chest would come after German Chancellor Angela Merkel, the dominant power in two years of crisis fighting, this week warned of “fragility” in Portugal and Spain.

Locally, it was a sea of red for the major miners with shares in BHP Billiton down A36c to $34.25, while Rio Tinto dipped 17c to $64.36, Fortescue Metals Group shed 13c to $5.85, OZ Minerals dropped 21c to $9.60 and Paladin Energy closed 4c lower on $1.88.

Australian platinum producer Platinum Australia recorded its third big share price move for the week, up 30.43% or 3.5c to 15c on no news.

Shares in Augur Resources also had a run, rising by 22.5% or 1.8c to 9.8c on no news.

The wooden spoon of the day went to Mindax with its shares falling 17.24% or 2.5c to 12c after a meeting was called by the company’s second-largest shareholder Andrew Tsang to remove managing director Gregory Bromley and director Kenneth Pettit and appoint John Stacpoole.

Loh Kgai Mun (known as Eric Loh) also accepted an invitation to become a director.

Shares in Dart Mining were placed in a trading halt pending a capital raising.

Gold stocks were mixed with Australia’s largest locally owned miner Newcrest Mining gaining 14c to $30.23, Alacer Gold Corp dipped 7c to $8.13 and Kingsgate Consolidated shed 13c to $6.32.

At 4.17pm (AEDT) the spot price of gold was down $US2.65 or 0.16% to $1660.90 an ounce while the Australian dollar was fetching $US1.03. – with Bloomberg