Technology companies may be struggling to persuade investors that earnings downgrades are nothing more than a temporary blip but the sector still has the power to impact on the prospects of support industries. One beneficiary has been Dublin-listed DCC, following news this week that its British-based subsidiary Gem has won the sole distribution rights for Microsoft's Xbox in Britain and the Republic.

News of the contract is seen by both Dolmen and Davy as positive for DCC's IT business as a whole. DCC's shares have recovered strongly since September 11th, and are rated a buy by Dolmen's Tom Kehoe.