Shares in Shanghai main-tained their upward trend yesterday, but analysts warned that the market might see a fluctuation this month.

　　The Shanghai Composite Index climbed a moderate 0.79-percent to 1522.55. The overall indicator has increased 4.6 percent over the last four trading days, picking up most of last month's losses.

　　The rebound, which first took hold in big capitalization firms such as banks, petrochemical producers and automakers, spread to stocks across the board yesterday.

　　Textile dying company Jiangsu Dingqiu Industry Co Ltd, the day's top gainer, rose 6.44 percent to 11.39 yuan (US.37).

　　However, analysts were cautious on outlook.

　　According to rules, strategic investors - those likely to hold shares for a long time as part of a business strategy - will next week be allowed to sell billions of A shares they hold in China United Telecommunication Corp and China Merchants Bank, both big caps.

　　China Unicom moved up 2.03 percent to 3.01 yuan, with Merchants Bank rising 1.65 percent to 10.45 yuan.

　　The move may dilute market capital and curb liquidity, "putting a lid on market sentiment," said Zhang Qi, an analyst with Haitong Securities.