Tech stocks take a blow on NYSE.

Technology shares took a beating on the New York Stock Exchange last week, with investors concerned that the PC market will slow down this year.

Shares were badly hit on March 25, which market analyst Frank Teixeira branded 'a disaster day for tech stocks'. PC manufacturers bore the brunt of investor selling, particularly IBM, which closed $5 1/2 down to $110 1/2. Also hit were HP, down $2 3/4 to $94 1/4 and Digital, down $2 1/4 to $52 1/8.

Shares also plummeted at Philips, Europe's largest consumer electronics group, after a warning that Q1 earnings would fall sharply. President Jan Timmer said that net income from normal business operations would be below the last year's figure of u296 million. Shares dropped by 10.9 per cent after the warning.

Analysts noted that Philips' warning of 'a considerable decline in net profits from ordinary operations' usually means a drop of between 30 per cent and 45 per cent.

'The technology charts are weak,' said Teixeira. 'The semi-conductor shares are close to bottom, but have not got there yet.' He added it was the relatively strong high tech shares that had suffered the most as investors unloaded shares.