SHARES in Shanghai lost steam after Monday's sharp rise but still edged up at the close of trading yesterday.

The benchmark Shanghai Composite Index, which tracks yuan-backed A shares and US dollar-denominated B shares, inched up 12.92 points, or 0.36 percent, to 3,612.54 yesterday. Turnover rose to 92.7 billion yuan (US$13.2 billion) from Monday's 84.6 billion yuan.

''Investment confidence is still weak amid the lack of actual positive policies to support long-term sentiment,'' said Hong Yanhua, a Huiyang Investment analyst. ''The push for short-term profit taking also limited the rise (in the index).''

Wan Bin, a GF Securities Co analyst, said the ''adjustment of the index is good for the long-term development of the market after the recent strong rebound. Retail investors can also take the chance to shift their holdings to bellwethers which enjoy growth potential.''

Shares of brokerages performed well yesterday. Haitong Securities gained 4.93 percent to 33.60 yuan while Hongyuan Securities jumped 5.29 percent to 22.90 yuan. China Citic Securities rose 1.46 percent to 57.68 yuan.

The agricultural sector was another gainer yesterday, with Heilongjiang Province-based Wanxiang Doneed Co rising 3.04 percent to 13.20 yuan.

The gold mining sector also benefited from the rebound in prices of the precious metal. Zhongjin Gold Co advanced 3.02 percent to 73.93 yuan and Shandong Gold-mining Co climbed 6.26 percent to 136.01 yuan.

Among decliners, Industrial & Commercial Bank of China, the country's biggest lender, shed 1.87 percent to 6.30 yuan. China Merchants Bank, seen as the country's most lucrative bank, dropped 0.54 percent to 33.44 yuan.