The sharemarket closed in negative territory today after the major banks and big miners all posted losses.

The benchmark S&P/ASX 200 index closed down 36 points, or 0.79 per cent, at 4537.2 points, while the broader All Ordinaries index fell 34.7 points, or 0.75 per cent, to 4578.3 points.

Burrell Stockbroking director Richard Herring said the ASX followed a negative lead from offshore markets.

However, Mr Herring said today’s dip should not raise concerns.

“The market has enjoyed a strong run over the last four weeks, from late August, so a little bit of a breather today is not too damaging,” Mr Herring said.

The new federal Labor minority government may awaken investor caution and add to market instability in the coming weeks, he added.

“This might become a very protracted and useless exercise, at the end of the day, because nothing will actually get done (in parliament).

“All we need is just one by-election, or for someone to cross the floor, and it’s just deadlocked and you might end up in this colossal stalemate on policy and that’s not good for anyone.”

The big four banks all finished lower, with Commonwealth Bank losing 57 cents to $51.78, Westpac falling 33c to $22.70, National Australia Bank dipping 45c to $23.95 and ANZ 27c lower at $23.49.

At 0610 GMT, the Australian dollar was at US91.40 cents, up slightly from late yesterday. Against the Japanese yen, the Australian dollar was at Y76.255, down from Y76.835.

The Aussie posted stellar gains against the New Zealand dollar through the Asia session, climbing from around $A1.2650 to a peak of around $A1.2728. The Aussie is also poised to touch fresh record highs against the euro.

In mining news, Sundance Resources announced it had entered into a memorandum of understanding with CRCC China-Africa Construction regarding rail facilities for the iron ore explorer’s flagship project in West Africa.

Sundance shares strengthened by 3c (19.35 per cent) at 18.5c.

The two big miners closed in the red, with BHP Billiton down 53c at $37.91 and Rio Tinto losing 91c at $73.44.

In other news, global beverages firm Foster’s Group said it had received, and rejected, a non-binding proposal to buy its Treasury Wine Estates wine assets for between $2.3 billion and $2.7bn.

Foster’s said the unsolicited expression of interest had come from an international private equity firm. Shares in Foster’s rose 27c (4.45 per cent) to $6.34.

(Source: TheAustralian.com.au)