The Stockholm Stock Exchange is rising on Monday following news that the U.S. and Iran have reached a peace agreement. The rally is being led by cyclical sectors, specifically commodities and industrials. Conversely, the energy sector is bucking the trend, retreating in the wake of lower oil prices. In corporate news, Netel and Infrea have announced a merger.

By 12.55 p.m., the OMXS30 index had climbed 1.35 percent to 3,155.48. Shares worth approximately SEK 8.8bn changed hands on the Stockholm Exchange.

Among the major industrial sectors, commodities performed best with a 3.5 percent gain. Industrials also showed strength, rising 2 percent. At the other end of the spectrum, energy sat at the bottom, declining 1.8 percent.

Among the leading stocks in the OMXS30 index, Boliden rose 6.2 percent while SKF B gained 4.9 percent. The weakest performance came from Telia, down 3.4 percent, while Tele 2 B fell 2.2 percent.

The boards of infra-network company Netel and construction firm Infrea have agreed to a merger. The transaction will be executed by Netel absorbing Infrea. Four shares in Infrea will entitle holders to seventeen new shares in Netel. Netel is conducting a rights issue of up to SEK 202m in connection with the merger. Netel's shares are down 3.2 percent, while Infrea is up 6.1 percent.

Engineering group Sandvik has secured a major order worth SEK 350m from the Australian mining contractor Barminco for the Bellevue Gold project in Western Australia. The stock is up 3.8 percent.

Construction firm Skanska rose 2.5 percent. The company has been awarded a contract for the construction of the new Central Hospital in Karlstad. The contract is valued at SEK 4.4bn, which will be included in the order intake for the second quarter of this year.

Pharmaceutical giant AstraZeneca has received U.S. approval for Truqap in combination with abiraterone and prednisone for the treatment of adult patients with PTEN-deficient metastatic hormone-sensitive prostate cancer. This marks the first and only targeted treatment for this patient group in the U.S. The stock was down 0.5 percent.

Technology company Mycronic has received an order for an SLX mask writer from a new customer in Europe. The order value is between $6m and $8m, with delivery scheduled for the third quarter of this year. The stock is up 3.2 percent.

Research firm Synact Pharma announced that the Phase 2 Advance study of its drug candidate resomelagon for rheumatoid arthritis failed to achieve statistical significance for its primary endpoint: the change in disease activity measured by DAS28-CRP after 12 weeks of treatment. The stock was punished, falling 28 percent.

Martin Åberg, Deputy CEO and Head of the Data Center business area at fiber communications company Hexatronic, has decided to step down to focus on his private investments. He will remain in his role until a successor is appointed. The stock is up 0.4 percent.

Lightning Group has signed an agreement to acquire all shares in the lighting company Aura Light. The acquisition target had a turnover of SEK 280m last year with an operating loss of SEK 17m. Lightning Group is conducting a SEK 23m rights issue to finance the acquisition. The deal was very well received, with the stock advancing 66 percent.

Blood analysis company Cellavision is climbing 7.5 percent following a buy recommendation from Dagens Industri.

Telia's decline is attributed to Berenberg lowering its recommendation to sell from hold. The price target was raised from SEK 31 to SEK 40.