New Zealand shares have followed Wall Street lower as investors question whether tech and high-growth companies can deliver the earnings growth implied by their valuations.

The NZX 50 Index fell 27.892 points, or 0.5 per cent, to 5063.539 on Monday. Within the index, 25 stocks fell, 17 rose and eight were unchanged. Turnover was $100.7 million.

In New York on Friday the tech-heavy Nasdaq Composite Index closed at its lowest level since February.

Local tech and high-growth stocks, among the biggest gainers last year, have retreated on concern prices have run up too far and too fast.

Pacific Edge dropped 8.2 per cent to a six-month low of $1.01, having fallen to 99 cents in intraday trading. The maker of a non-invasive bladder cancer test has declined 24 per cent in the past month.

Cloud accounting software company Xero fell 6.5 per cent to $29.30, the lowest in almost six months. Governance software app Diligent slipped 1.9 per cent to $4.12.

“It really is selling because the rest of the technology sector around the world is coming off,” said Grant Williamson, director at Hamilton Hindin Greene.

“It’s very difficult to put fundamental value on these types of companies because much of it is really looking into the future and trying to work out what their revenue and earnings might be.”

Defensive stocks such as infrastructure and property trusts gained as investors sought companies with dependable earnings.

Telecom rose 1.2 per cent to $2.64. DNZ Property Fund, which on Monday announced job cuts to trim costs, advanced 0.5 per cent to $1.55, while Argosy Property climbed 0.5 per cent to 91.5 cents and Precinct Properties was up 0.5 per cent to $1.00.