Optimism regarding a potential peace settlement led the Stockholm Stock Exchange to close higher on Friday, tracking gains across leading European markets.

Following various statements from both the U.S. and Iran, the belief persists that a peace agreement may be imminent. In the U.S., however, market focus is divided by the largest initial public offering in history: SpaceX.

On the domestic front, the most notable moves included Duni falling after issuing a profit warning, while Tången performed strongly in its market debut.

At the close, the OMXS30 index was up 1.60 percent at 3,113.57. Shares worth approximately SEK 26.2bn were traded on the Stockholm Stock Exchange.

The best performance among the major industrial sectors was telecommunications, which rose 2.6 percent. At the other end of the spectrum, energy lagged behind with a decline of 3.8 percent.

Among the leading stocks included in the OMXS30 index, Boliden rose 3.7 percent while Ericsson B gained 3.5 percent. The weakest performers were Saab B, down 2.7 percent, and AstraZeneca, which fell 1.7 percent.

The IPO of Tången Industrikapital saw the stock perform strongly in Friday's debut trading. The offering was oversubscribed several times, and the company gained 4,000 new shareholders. The stock climbed 11.9 percent compared to the subscription price of SEK 67.

Consumer products company Duni warned that its operating result for the second quarter is expected to be lower than market expectations due to extensive logistical disruptions related to a new logistics center in Germany. The negative impact on earnings is estimated at SEK 50-70m for the quarter. The stock fell 5.6 percent.

Investment company Svolder's net asset value increased by 7.8 percent in the third quarter. This significantly outperformed the benchmark index, which rose 2.9 percent. CEO Tomas Risbecker sees increasing signs that conditions for Swedish small and medium-sized companies are gradually improving. The B-share was up 3.1 percent.

Housing platform Hemnet's revenue in May fell by 27 percent. The number of published property listings decreased by 20 percent. The stock fell 8.5 percent.

Private equity firm EQT is planning to sell its stake in the Singapore-based healthcare group HMI Medical in a deal valued at around $600m. However, the process is in its early stages and there is no guarantee that a transaction will be completed, according to sources cited by the Wall Street Journal. The stock was up 2.2 percent.

Research company Synact Pharma fell 0.3 percent after receiving a key patent for resomelagon in the U.S., securing exclusivity until 2044.

Nuclear technology company Studsvik has submitted an application for state support to develop new nuclear power in Sweden. The application was presented on Friday to Minister for Financial Markets Niklas Wykman at the Ministry of Finance in Stockholm. The application covers up to 1,400 megawatts of new fossil-free dispatchable electricity production and represents Sweden's first private SMR application at the gigawatt level within the framework of the state financing system. The stock increased 2.8 percent.

Measurement technology company Hexagon has acquired Itres, a Canadian provider of airborne hyperspectral and thermal imaging systems. The acquisition adds revenue of €13m. The stock rose 0.4 percent.

During championship season, betting company Betsson also moved upward on the exchange. The stock rose 1.3 percent. Meanwhile, Kambi fell 1.5 percent.

SB1 Markets has released analyses on eight Swedish real estate companies. Among the new coverage, Neobo and Nivika received buy ratings. The only change in recommendation applies to Wallenstam, which was downgraded to neutral from buy. Neobo rose 3 percent and Nivika rose 0.3 percent. Wallenstam was up 1.5 percent, despite the downgraded recommendation.

ABG Sundal Collier initiated coverage on Rusta with a buy rating. The stock rose 2.3 percent.

Kepler Cheuvreux raised Getinge to buy from hold. The stock rose 4.1 percent.

Barclays raised Avanza to overweight from equal weight. The stock rose 7.7 percent.