Investors took the opportunity to sell some shares and book profits on Tuesday.
The benchmark NZX 50 index fell a modest 0.6 percent to 4428 following a slew of bad news from overseas, including plunging gold prices, disappointing Chinese economic news, and fatal explosions at the Boston marathon.
The benchmark had fallen more than 1% at one stage.
Hamilton Hinden Greene's director, James Smalley, said local investors appeared relatively calm, with many sitting on their hands while others took the opportunity to cash in on the recent surge on the stock market.
He said the market hiccup may also have a positive benefit for the soon-to-be listed Mighty River Power.
NZ dollar rebounds
The New Zealand dollar regained some lost ground against currencies like the US dollar and Japanese yen, after global investors sold commodity currencies such as the kiwi and Australian dollar following a weaker-than-expected Chinese economy.
The currency traded at 84.8 US cents on Tuesday evening.