The tech sector was the biggest loser on Monday, dropping 2.8 per cent, while energy rose. -AAP Image
The local share market has closed lower, with sentiment turning as Israel amasses troops on the border of Gaza to prepare for a land invasion.
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The benchmark S&P/ASX200 index on Monday finished 24.5 points, or 0.35 per cent, to 7,026.5, while the broader All Ordinaries fell 28.9 points, or 0.4 per cent, at 7,214.6.
In Israel, the military was launching airstrikes against Gaza and seemed poised to launch its biggest ground operation since the 2006 invasion of Lebanon.
"The escalation in the Israel-Hamas conflict has caused risk aversion to rise among investors, contributing to a drop in global bond yields and sell off in major global share markets," St George chief economist Besa Deda said.
The Australian dollar was buying 63.26 US cents, from 63.19 US cents at Friday's ASX close.
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