Vietnam shares ended down 3.1% Wednesday after three sessions of gains on local selling amid continued concerns over the government's decision to end its subsidised lending program later this year, three months earlier than initially planned, analysts said.

The program, which started in February, helps offset four percentage points off interest rates on short-term loans that enterprises take from commercial lenders. Under the program, banks extended loans worth VND415.9 trillion as of Nov. 26.

The benchmark VNIndex closed down 3.1%, or 15.78 points, at 499.14, in heavy volume, with 53.1 million shares, valued at VND2.1 trillion, changing hands.

"Many locals sold on concerns that the government's decision will cause higher operational costs to companies," said Pham Huy Cuong, chief of research and private equity at Sacombank Securities.

"Players were also selling to take quick profits after some blue chips rose more than 10% over the past four days," Cuong said.

Among top decliners were Sacombank, down 4.9% at VND25,300 after rising 15% the past 3 days; Vietcombank, down 2.3% at VND47,000 after gaining 12.4% the past four days; and SSI, down 5.0% at VND77,500 after rising 4.0% the past four days.

"The correction this week is likely to be short lived because inflows are expected to soon rise because stock investment remains the top option for local people," Cuong said, predicting the key index to move between 480 and 520 this week, and to rebound next week on hopes for fourth quarter positive earnings.