There was already a move in HBL prior to the Kavach order announcement wherein stock price went up from its 200 dema levels of around 530 to 690 plus. With this kind of run up, part of the news is already baked in price. There are some players who play these kind of spurts and sell on news. To add to that we have a weak overall market which puts pressure on stock prices.
Kernex already rallied from 750 odd levels to nearly 1500 levels within 2-3 months, which is a significant move for any stock in such a short period of time. After such moves there will be periods of rest, in form of correction, or sideways movement.
There is a phenomenon called Street Lag. Here inspite of news out in open, stock prices often take time to catch up because of any number of reasons, be it weak markets, fancy for other stocks, so on and so forth. We see this commonly in some turnaround companies wherein inspite of a couple of good quarterly results, stock price takes a lot of time to move. Some people use this kind of situation to their advantage and make decent returns.
Stock prices move in mysterious ways in the near to short term. Longer term its highly correlated to earnings. That’s where long term oriented investors with good temperament have an edge.