Dhaka, Jan. 21 -- The stock of Fine Foods started off on a steep decline more than a week before it announced a record 376 per cent year-on-year profit growth on January 16 for the first half of FY25.

It kept falling even after the earnings disclosure, resulting in a 28 per cent correction in the nine sessions through Sunday.

The stock's movement raised a question as to why the positive earnings report failed to draw in investors. In fact, investors' enthusiasm seems to have faded way ahead of the disclosure.

Market experts attribute this phenomenon to a popular trading strategy known as 'Buy the Rumor, Sell the News'.

Some investors, called news traders, tend to hold positions for a very short time in securities as the impact of news...