The Stockholm Stock Exchange's large-cap index, OMXS30, reversed course to close in positive territory after opening lower on Monday.
The turnaround was fueled by strong buying interest in specific sectors, with gaming operator Kambi and assistive technology firm Dynavox leading the rally with double-digit percentage gains.
The market's shift in sentiment follows a week marked by corporate activity, including Ambea's bid for rival Humana.
While Ambea's shares traded sideways following the announcement, the target's stock surged, contributing to a generally positive tone that carried into the new week.
The OMXS30's recovery suggests investors are digesting the M&A news and rotating into growth names.
Kambi and Dynavox emerged as the standout performers, their sharp rallies providing the necessary momentum to lift the broader index.