THE weak performance of the technology sector has emerged as a key theme among last year's worst-performing stocks.

Creative Technology was the worst-performing stock for the year in terms of monetary change.

Its share price fell $3.87 from the beginning of the year to close at $6.33 on Monday. That was less than a quarter of its highest value three years ago: $27.50.

The firm has been battling falling revenues after a series of unprofitable quarters. It most recently swung into the black, but that was due to a one-off gain from offloading a factory.

Other technology plays that took a hit last year included Jurong Technologies Industrial Corp and Venture Corp, whose share prices fell 54.3 cents and 70 cents, respectively.

'Earnings of tech companies could be under siege next year,' DBS Vickers analysts Tan Ai Teng and Sachin Mittal warned in a report downgrading the sector to 'underweight' from a 'hold'.

A slowdown in the United States - one of the biggest export markets for Singapore's electronic products - and higher materials costs are among the factors that may contribute to lower profits for technology firms.

Hit by lower orders, electronic contract manufacturer Jurong Technologies Industrial, which makes hard disks and sound and graphics cards, recorded a fall in third-quarter profit.

Spearheaded by newly appointed chief executive Cheang Chee Ming, it is diversifying its revenue stream to make ultra low-cost handsets and LCD televisions.

Another battered stock was OSIM International, whose shares lost 57.14 per cent, or 80 cents, apiece for the year to close at 60 cents on Tuesday.

Penny stock Liang Huat Aluminium was the worst performer in percentage terms, down 77.5 per cent to 4.50 cents.