Australian shares dip as banks fall, miners gain

Lithium players Pilbara, Liontown and Mineral Resources have jumped on a possible short squeeze. (Bianca De Marchi/AAP PHOTOS)

The Australian share market has closed modestly lower, with losses from the financial and energy sectors outweighing gains by the mining sector including long-suffering lithium developers.

The benchmark S&P/ASX200 index on Wednesday finished down 24 points, or 0.3 per cent, to 7,987.9 while the broader All Ordinaries fell 21.8 points, or 0.27 per cent, to 8,195.2.