Fisher & Paykel Healthcare's fading share price continued to weigh on New Zealand’s share market as investors remain wary of its outlook.

The S&P/NZX 50 Index fell 145.28 points, or 1.2%, to 11,909.72. Turnover was much higher than average at $349.8 million across the main board.

F&P Healthcare fell for the fourth session in a row, sliding 3.8% to $23.48, leading the market lower. The stock extended its two-year low after warning its annual revenue would be down by about 13% as the medical equipment manufacturer loses the tailwind the covid-19 provided its products.

Peter McIntyre, an investment adviser at Craigs Investment Partners, said rising interest rates were the main force driving markets, but F&P Healthcare’s large weighting on the benchmark index “dragged” it down for another day.

Retirement village operator Ryman Healthcare also dragged the index lower as it slipped 2.9% to $9.29.

Air NZ fell 0.4% to $1.40 after saying it will claim up to $180m from the government’s $250m extension to cargo support scheme to help maintain air freight capacity through the covid-19 pandemic. Investors are preparing for the national carrier to unveil the details of its planned capital raising, which some analysts estimate will be about $1 billion.

Among other stocks on the benchmark index that declined, Pushpay fell 3.5% to $1.10, Infratil dropped 3% to $7.99 and Skellerup declined 2.7% to $5.74.

Eroad posted the day’s biggest gain on the NZX 50, rising 2.9% to $3.91 after entering a three-year debt facility with ANZ and Bank of NZ as it enters a period of growth.

“This refinancing and the amortisation profile gives us extra flexibility to support organic growth over the coming years,” Eroad chief executive Steve Newman said.

Craigs’ McIntyre said the market had responded positively to the move.

“It’s always good to hear that news from the market’s perspective,” he said.

Ebos rose 1.1% to $40 after the healthcare and animal products firm said it got approval from Australia’s antitrust regulator to buy LifeHealthcare.

Outside the benchmark index, media group NZME gave back some of Friday’s 8% gain, falling 1.2% to $1.63. The company signed a letter of intent with Google for its News Showcase product, which is expected to contribute to increased earnings this financial year.

Hallenstein Glasson shares rose 2% to $6.49, recovering some of its declines on Friday when it reported a 40% slump in first-half profit due to pandemic-related shutdowns.

Retailers have been struggling through the omicron outbreak and tended to have pessimistic outlooks about the state of the economy.

ASB wealth senior economist Chris Tennent-Brown said the March ANZ Business Outlook survey on Wednesday would likely show the general business climate worsening, from already-concerning levels.

“Consumers are expected to continue to feel much worse off than a year ago and display a reluctance to purchase major items given soaring consumer prices, rising interest rates, growing housing market headwinds and concerns over the omicron outbreak,” he said.

The NZ dollar drifted down through the local trading session, trading at 69.49 US cents at 3pm in Wellington from 69.61 cents last week. The trade-weighted index was at 74.74 from 74.83 last week.