Spanish stocks higher on talk of short-selling ban from MarketWatch.com - MarketPulse MADRID (MarketWatch) -- Spanish stocks rebounded from a sharp opening loss on Friday lifted by gains across the banking sector and led by a 26% rise for Bankia SA after a media report on a possible ban on short selling of banks. The IBEX 35 index defied losses across Europe to gain 1% to 6,596.40. Spanish daily Cinco Dias reported Friday, citing banking sources, that banks in the country want market regulator, CNMV, to reinstate a ban on short selling of domestic banking stocks. A spokeswoman for the regulator said there have been no changes. The index opened nearly 2% lower after Moody's Investors Service late Thursday downgraded 16 Spanish banks. Bankia shares have lost 12% this week after speculation that depositors had been rushing to take money out of the recently nationalized lender. BBVA SA jumped 3.6% and Banco Santander SA rose 2.6%.