The Australian share market has closed with a natural decline following a strong Easter period that culminated in a record high on Tuesday.
The benchmark S&P/ASX200 index on Wednesday closed with a drop of 105.4 points, or 1.34 per cent, to 7,782.5, its lowest close since March 26.
The broader All Ordinaries fell 112.2 points, or 1.35 per cent, to 8,033.6.
"When we go on this really strong run for a number of months, it always becomes a bit more challenging to remain at these levels," CommSec market analyst Steven Daghlian told AAP.
As the week continues Australia's share market will have to content with oil prices reaching a five-month high - a possible herald for inflation - as well as the release of the ISM Services Purchasing Managers' Index and the non-farm payroll figures in the US later this week.
"If we get some strong figures out with the US this week that ties back into the higher-for-longer narrative for the Federal Reserve ... then you could be looking at the ASX going below 7800," City Index market analyst Matt Simpson told AAP.
Of the ASX's 11 sectors, utilities and energy were the only two showing growth - despite their rates declining from noon - with the two up 0.16 per cent and 0.06 per cent, respectively.
Australian uranium miner Paladin has continued its upward trajectory from Tuesday, climbing 1.7 per cent, while major energy companies Woodside remained flat and Santos dropped by 0.1 per cent.
The utilities sector's strongest company was Origin Energy with a growth of 0.7 per cent.
The sector's growth may be explained by the jump in oil prices, which followed Israel's assassination of Iranian military leaders in Syria and Ukraine's attack on a Russian oil refinery and a munitions factory deep in Russian territory.
The materials sector declined by 0.9 per cent. BHP was down 0.6 per cent, Rio Tinto was up by 0.4 and Fortescue fell by 0.9 per cent.
The big four banks each fell, with the financial sector as a whole dropping 1.3 per cent.
Westpac dropped 1.0 per cent, ANZ fell 1.3 per cent, Commonwealth Bank declined 1.74 per cent and NAB dropped 1.9 per cent.
Back in the mining sector, Westgold Resources fell by 14.8 per cent after downgrading its production guidance due to flooding and wet weather.
The Australian dollar had risen back above 65 US cents, buying 65.2 US cents, from 64.90 US cents at Tuesday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Wednesday finished six points lower at 7,782.5, a drop of 1.34 per cent.
* The broader All Ordinaries dropped 112.2 points, or 1.35 per cent, to 8,033.6.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.20 US cents, from 64.90 US cents at Tuesday's ASX close
* 98.81 Japanese yen, from 98.48 yen
* 60.49 Euro cents, from 60.47 Euro cents
* 51.83 British pence, from 51.74 pence
* 109.13 NZ cents, from 109.12 NZ cents
