SHANGHAI shares are expected to correct this week on a shrinking turnover and lack of impetus, analysts said.

Speculations and rumors over a possible debut of stock index futures and a reform of the oil-pricing mechanism stimulated the market last week, said Qian Qimin, an analyst of Shenyin Wanguo Securities Co.

The Shanghai Composite Index, which groups yuan-denominated A shares and hard-currency B shares, ended at 3,433.35 points last Friday, the final trading day of May.

Fan Fuchun, deputy chairman of the China Securities Regulatory Commission, said on Wednesday that preparations for the launch of the stock index futures were nearly completed after two years of work. His remarks were widely seen to mean the financial tool would debut soon and brokerages would benefit.

Qian pointed out that another factor for investors to take into account is the shrinking turnover as he predicted the index would range between 3,250 and 3,500 points this week.

Yang Ming, an analyst at Shanghai Securities, said the index ''won't drop sharply in the short term as the average valuation of blue chips has become reasonable and capital has begun flowing into these stocks.''

Yang predicted the index will range between 3,350 and 3,600 points and he advised investors to focus on companies in the financial sector as well as firms involved in developing new energy.