Harbour Asset Management portfolio manager Shane Solly said the Reserve Bank's rate cut was well received but that it would take time to filter through into the economy.
"What we are seeing is the Reserve Bank being supportive, but the travel sector has been hit hard," he said.
"It's a positive but in the meantime, people are very much focused on the market impact of the travel restrictions being put in place."
"It will take time for those rate cuts to filter through," he said.
Similarly, the US Federal Reserve's move to cut the US fed funds rate to near zero would also take time to make its presence felt.
Outside the travel sector, the utility stocks were finding support.
In telecommunications, Spark rallied to 7c to $4.17 while the power generators recorded only modest falls.
Elsewhere, probiotics maker Blis Technologies rose 26.5 per cent to 6.2 cents. The firm upgraded revenue and earnings guidance for the March year on the back of strong demand for its products.
Prime Minister Jacinda Ardern announced on Saturday that all travellers to New Zealand – except those from the Pacific Islands – will have to isolate themselves for 14 days upon arrival. That includes citizens and permanent residents.
In response, Air New Zealand announced it would slash its international long-haul service by 85 per cent over coming months and had already starting to identify a wave of redundancies.
The airline's shares were placed in a trading halt, with full details of schedule changes to be advised in the coming days. The value of Air New Zealand shares has roughly halved since early January, when they were trading around $3.05.
Auckland International Airport suspended both its earnings and capital expenditure guidance for the current financial year.
Millennium & Copthorne Hotels New Zealand halted trading of its shares while it assesses the impact of the travel restrictions on its business.
"The tourism stocks are being sold off left, right and centre as the strict self-isolation restrictions come in. They are scrambling to try to figure out the implications and that's not an easy thing to do," said Grant Davies, an investment adviser at Hamilton Hindin Greene.
"The rate cut should be positive, but most of it would be priced in. Although, the speed at which they were cut has been a surprise."
Lender Westpac Banking Corp rose 9.6 per cent to $18.80 and Australia and New Zealand Banking Group climbed 7.9 per cent to $18.90.
The dual-listed banking stocks caught up with the Australian equity market, which closed 4.4 per cent higher after on Friday having slumped as much as 8 per cent during the session. Much of the dramatic comeback occurred after the New Zealand market had closed for the weekend.
ASX futures were recently up 61 points at 5,655.
Serko said in a statement to the NZX that the travel restrictions made it too hard to predict the impact of the outbreak on earnings. It withdrew its guidance.
Good Spirits Hospitality also withdrew its earnings guidance on the restrictions, saying the impact was going to be bigger than anticipated.
The restaurant and bar operator also said it's started talking to its shareholder and lender, Pacific Dawn, about extending and amending its banking facilities. The shares dropped 2.9 per cent to 13.6 cents.
Wellington Drive Technologies fell 6.5 per cent to 13 cents after it said its supply chain is still being affected by the outbreak, and that first-quarter revenue was below expectations.
Separately, New Zealand's services sector activity remained in expansionary territory in February but did drop to its lowest level of activity in eight years, according to the BNZ - BusinessNZ Performance of Services Index.
The February PSI was a reading of 52, down 5.2 points from January. A measure above 50 indicates expansion.
BNZ economist Doug Steel said while the gauge showed activity held up, there were clear pockets of weakness starting to appear. "We think it will get worse before it gets better, as the fallout from covid-19 is felt," he said.
- With BusinessDesk
