The New Zealand stock exchange lost more than 1% in value on Monday morning, following concerns about the housing market in the United States.
At 11.50am, the NZX 50 index was down 35 points to 3,087 on turnover of $39 million.
About 60% of trading has been in New Zealand's largest listed company, Telecom, which declined 8 cents to $3.31.
Contact Energy was down 14c to $7.46 and Fletcher Building was down 8c to $6.30.
While the drop could be a minor reaction to the situation in the United States, a director at broking firm Hamilton Hinden Greene, Adrian Vance says it also reflects the general market outlook in New Zealand.
The NZX 50 index closed at 3121 on Friday. The Australian 200 index was up 34 points, to 4972.
US stocks fell more than 1% on Friday, driven by fears about the stability of two of its biggest home lenders, Freddie Mac and Fannie Mae, and higher oil prices.
Banking regulators have also taken control of a major mortgage lender, IndyMac. It was the third-largest bank failure in American history.
The Dow Jones industrial average fell 128.48 points, or 1.14%, to 11,100.54 on Friday. Standard & Poor's 500 Index slid 13.90 points, or 1.11%, to 1,239.49.
The Nasdaq Composite Index dropped 18.77 points, or 0.83%, to 2,239.08.