Peter McIntyre, an investment adviser at Craigs Investment Partners, said many stocks were being sold off despite having a dividend payment still attached.
"Investors are just wanting to sit on the side-lines and rather than receive the income they'd rather have that cash just sitting in a safe haven," he said.
Despite the panic seen on global markets, McIntyre said New Zealand had held up to the oil price shock comparatively well.
"We haven't got many resource stocks or oil related stocks on our exchange, but we are also a low-beta market. So, we don't tend to rush as high, or go down as far."
Pushpay Holdings led the market lower, falling 9.3 per cent to $3.61 as investors sought to reduce the risk in their portfolios.
"It's a high growth, high risk stock, and generally those are the first ones who get sold off when we see this type of capitulation," McIntyre said.
New Zealand energy stocks were also weaker. Genesis Energy, which owns interests in the Kupe oil and gas field, was the hardest hit, down 7.5 per cent at $2.90, despite holding a dividend pay-out this month.
Meridian Energy, the country's biggest generator, fell 6 per cent to $4.40, Mercury NZ was down 3.2 per cent at $4.645 and Contact Energy fell 4.8 per cent to $6.50.
Fuel-retailer Z Energy declined 0.3 per cent to $4.06, likely buoyed by the assumption that lower oil prices would lead to higher levels of fuel consumption, McIntyre said.
New Zealand's only oil refinery, which is part-owned by Z Energy, New Zealand Refining Company dropped 6.3 per cent to $1.05.
Air New Zealand declined 5.3 per cent to $1.95, a four-year low, after it dropped its earnings guidance saying demand for air travel had softened further in the last week, causing it to reduce total capacity into Asia by 26 per cent and overall network capacity by approximately 10 per cent since the outbreak began.
Auckland International Airport fell 2.4 per cent to $7.70.
Precinct Properties New Zealand was one of just two stocks to gain on the day, climbing 1.6 per cent to $26.77. Today the stock was announced to be included in a global real estate index, alongside Goodman Property Trust which was added on Friday.
McIntyre said investors tend to rotate through the property stocks, but Precinct was one favoured by investors as it pays dividends through funds from its operations rather than through debt.
Other property stocks fell as investors rotated their holdings into Precinct.
Argosy Property fell 5.7 per cent to $1.315, another stock that has been sold-off despite holding a dividend until tomorrow.
"If you want to lighten your positions on a day like this you are going to have to accept a lower price and we are seeing some selling pressure on Argosy today."
Property for Industry fell 4.4 per cent to $2.41, Stride Property declined 3.2 per cent to $2.15, Goodman Property Trust decreased 1 per cent to $2.405 and Kiwi Property Group held at $1.465.
Fisher & Paykel Healthcare posted the day's biggest gain, climbing 4.2 per cent to $26.77. The company derives half its income in US dollars, which means when the kiwi dollar is weaker its export receipts are larger. The New Zealand dollar dropped about a US cent from Friday's close in New York.
