KUALA LUMPUR (Feb 14): Carlsberg Brewery Malaysia Bhd's share price rose as much as RM1.20 or 3.37% to RM36.86 so far today as investors weighed the stock's outlook after MSCI Inc said Carlsberg will be added to the MSCI Global Standard Index.

At 3:26pm, Carlsberg pared gains at RM36.54 after 1.15 million shares were traded. The stock was the second largest-gainer across Bursa Malaysia.

At RM36.54, Carlsberg has a market capitalisation of RM11.17 billion.

Yesterday, Carlsberg shares rose to their record high of RM37.18 after MSCI said Carlsberg will be added to the MSCI Global Standard Index following the February 2020 quarterly index review for the MSCI Equity Indexes.

British American Tobacco (M) Bhd will, however, be removed from the MSCI Global Standard Index, said MSCI, adding that all changes will be implemented as of the close of Feb 28.

Today, analysts said they were surprised by Carlsberg's share price reaction to the news yesterday.

"While this (inclusion into the MSCI Global Standard Index) has been within our expectations, the reaction to the development has surprised us, with (the) share price surging 6.7% to (close at) RM35.66 yesterday. Meanwhile, as a laggard, Heineken Malaysia Bhd gained 5%," UOB Kay Hian Securities (M) Sdn Bhd analyst Philip Wong wrote in a note today.

"Both breweries are expected to release their results on Feb 21, 20. Broadly, we maintain our recommendations and earnings at this juncture given both breweries are due to release their results soon. For now, we maintain BUY on Carlsberg and Heineken with DCF (discounted cash flow)-based target prices of RM29.70 and RM30.00 respectively," Wong said.