[R]3:00AM New York, 7:00PM Sydney – ABC Learning plans to sell its U.S. based unit. Allco surges on founder increasing its stake. Nufarm acquires U.S. based businesses.[/R]

Market Sentiment

ASX 200 index shed 0.1% or 3.7 to close at 5,376.60.

Market Driver

Australia''s top investment bank, Macquarie Bank Limited today announced that Macquarie Securitisation Ltd would wind-back its Australian residential mortgage origination services for both retail and wholesale customers due to the significant increase in the cost of funding mortgages and current conditions in the global mortgage securitisation market.

The Head of Macquarie''s Banking and Financial Services Group, Peter Maher, said that the Bank would substantially reduce origination of new residential mortgages in Australia from 7 March 2008 but would continue to provide full service to Macquarie''s existing Australian borrowers totaling 95,000.

Maher said Macquarie''s mortgage portfolio comprises approximately 2.5% of the total outstanding housing loans market in Australia. Macquarie''s share fell 4.3%

Gainers and losers

Of the ASX 200 index stocks, Allco Finance Group led the gainers with a rise of 33.3% followed by increases in Macquarie DDR of 10.9%, in APN/UKA European of 6.7%, in Energy Res Australia of 6.5%, and in Independence Group of 6.2%.

Of the ASX 200 index stocks, Arrow Energy Limited led the decliners with a fall of 11.1% followed by losses in Sunland Group of 11%, in Asciano Group of 10.8%, in Insurance Australia of 10.1% and in Babcock & Brown of 9%.

Nufarm acquires US and UK businesses

Australia''s biggest supplier of farm chemicals, Nufarm Limited today revealed that it had acquired crop protection companies, British phenoxy herbicides supplier, AH Marks Holdings Ltd. for $65 million and Etigra LLC for $175 million in cash to expand in the U.K. and U.S.

The company said in a statement that it would fund the acquisition through the offering of $200 million in shares. Nufarm said it expected its earnings per share to rise by 5% in the 2009 fiscal years a result of the acquisition.

Nufarm is set to boost its sales to $1.9 billion on higher sales in products used to protect turf such as golf courses and in the global market for so-called phenoxy herbicides used to control weeds in crops.

Nufarm Ltd said the acquisitions would lift forecast annual net profit by $5 million this financial year to $150 million, up from the previous forecast of $145 million.

The company today announced a 60% reduction in unaudited first half profit to $4.6 million. It will release the official, audited figures later this month. Sales for the six months to January 31, 2008, rose to $990 million, up from just under $600 million in the previous corresponding period. Nufarm shares are on a trading halt.

Net profit on an operating basis, which excluded a $22.6 million net loss associated with barter trading liabilities in Brazil and a foreign exchange loss of $7.6 million, was $35.4 million, up from $6.6 million.

Nufarm said the global agriculture sector was ""very strong"", driven by unprecedented demand - especially in China - for protein from beef, pork and chicken. This required more cereal to feed more animals, which in turn required more agricultural chemicals to boost crop yields.

JBS S.A. acquires US and Australian firms

Brazil based world''s biggest beef producer, JBS S.A. today announced that it had agreed terms for the $1.27 billion acquisition of two U.S. companies, Smithfield Beef Group and National Beef Packing Co, as well as Australia''s Tasman Group, in cash and stock for assets.