--Argentine stocks and bonds fall amid ongoing concern about economic growth and exchange-rate policies --Currency policy speculation hurts dollar-denominated bonds while low growth expectations hit GDP warrants --Peso weakens slightly against U.S. dollar By Taos Turner Of DOW JONES NEWSWIRES BUENOS AIRES -(Dow Jones)- Argentine stocks and bonds performed poorly Monday amid solidifying expectations that the economy will weaken sharply this year and could even enter a prolonged recession. The Merval index fell 0.86% to 2179.53 in volume totaling ARS33.6 million ($7.5 million). "The feeling on the street is that everything is bad. The feeling is that the economy is decelerating substantially," said Adrian Mayoral, a trader at his family's brokerage. The TVPP GDP warrant fell about 1.3% to ARS10.91 on concern that economic growth won't reach the 3.26% rate necessary for the government to make a payment next year for this year's growth. Meanwhile, the Bonar 2015 dollar-denominated bond fell about 3.4% to ARS458.5 on speculation that the government might try to get out of making dollar payments on its debt. Steel producer Tenaris SA (TS, TEN.MI) led gains, rising 2.5% to ARS102.05. Sociedad Comercial del Plata SA (CVVIF, COME.BA), the energy, rail, real-estate and tourism holding company, led the losses, slipping 4.4% to ARS0.61. Financial group Grupo Financiero Galicia S.A. (GGAL.BA, GGAL) fell 2% to ARS2.76. The Global X FTSE Argentina 20 ETF fell 1% to $7.84. "We're looking a lot more like Europe," said Mr. Mayoral, referring to Argentina's weakening economy and speculation about the future of its currency. "The problem is that we don't have anyone to rescue us." The peso weakened to ARS4.49 against the U.S. dollar on MAE local foreign-exchange wholesale market, compared with ARS4.4845 in the previous session. The black-market rate remained close to ARS5.90 to the dollar, as government restrictions on buying dollars continue to lead residents to pay a fat premium. The peso has weakened 4.2% this so far year. -By Taos Turner, Dow Jones Newswires; 5411-4103-6728; taos.turner@dowjones.com
