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Shares down ahead of OCR announcement

NZ NewswireNZ Newswire 27/04/2016 Sophie Boot

Shares down ahead of OCR announcement © Hagen Hopkins/Getty Images Shares down ahead of OCR announcement New Zealand shares fell ahead of an interest rate announcement, with Fisher & Paykel Healthcare Corp, Summerset and Xero moving lower.

The S&P/NZX 50 Index dropped 45.3 points, or 0.7 per cent, to 6,750.41. Within the index, 32 stocks fell, 10 rose and seven were unchanged. Turnover was $223.7 million.

"We've had a couple of weak days. We have definitely come off the boil after a pretty strong run," said Mark Lister, head of private wealth research at Craigs Investment Partners.

The Reserve Bank's OCR update on Thursday has kept investors nervous, he said, with the US Federal Reserve and the Bank of Japan also due to make announcements.

"Markets have no idea what the Reserve Bank's going to do. They're quite split on whether they'll cut or hold fire, so the fact that there's a lot of uncertainty about the approach they'll take is probably weighing," Lister said.

F&P Healthcare fell furthest, down 3.3 per cent to $9.13. The breathing device manufacturer has high exposure to the New Zealand dollar's movements agains the US dollar, with the US its biggest market.

In addition, F&P Healthcare's ASX-listed competitor ResMed announced its quarterly results, which Lister said had disappointed the market with margins lower than expected.

Summerset Group dropped 3 per cent to $4.51, Xero fell 2.9 per cent to $16.50, and Air New Zealand shed 2.4 per cent to $2.64.

Orion Health rose 2 per cent to $4.18. The health systems software company announced a contract with a Canadian province, enabling healthcare providers to create and share care plans for complex high needs patients amongst a patient's healthcare team.

"The stock's been exceptionally strong through March and April. It's seen a 60-plus per cent return over the past six or eight weeks," Lister said.

Meridian Energy gained 2 per cent to $2.58, having fallen for four consecutive sessions.

Sky TV advanced 1.8 per cent to $5.16, and has gained 10.5 per cent this year.

Z Energy rose 0.3 per cent to $7.25.

Outside the main index, Veritas Investments rose 38.7 per cent to 43 cents, a three-month high.

Abano Healthcare gained 5.8 per cent to $8.15. The medical and dental centre investor has received an unsolicited approach to buy a 50 per cent stake in audiology company Bay International for almost three times book value.

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