The Boral (ASX:BLD) share price is surging 5% on Friday. Here's what might be going on

Here's what might be behind the stock's Friday gains.

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Key points

  • The Boral share price has gained 4.8% on Friday to trade at $5.95
  • This might be due to the broader market's performance today, as well as the materials sector's increase
  • The gain could also be a response to the stock's recent slump

The Boral Limited (ASX: BLD) share price is taking off today, surging higher despite no news having been released by the company.

However, its home sector is having a great day as the broader market bounces back from this week's struggles.

At the time of writing, the Boral share price is $5.95, 4.84% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is finally higher, boasting a 2.1% gain right now. The ASX 200's day in the green follows yesterday's slip that officially saw it hit correction territory.

Let's take a look at what might be helping the building products and construction materials' stock on Friday.

What's driving the Boral share price higher?

The Boral share price is pushing higher as the broader market rebounds today. Luckily for shares like Boral, the S&P/ASX 200 Materials Index (ASX: XMJ) is among Friday's winners.

The sector isn't recording the same gains as the likes of the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) or the S&P/ASX Consumer Staples Index (ASX: XSJ) – which are up 3.5% and 3% respectively.

Still, it's well and truly in the green, boasting a 1.66% increase, making its performance notably better than many other sectors' on Friday.

Boral is its home sector's second-best performer today, behind only Champion Iron Ltd (ASX: CIA). The latter's stock has gained an impressive 8% today.

However, the materials index is being weighed down by the Ramelius Resources Limited (ASX: RMS) share price. It has slipped 7% on the back of its report for the December quarter and newly released drill results.

Though, Boral's increase might not have much to do with its home sector's gains. The company's stock could be experiencing a 'correction' of its own.

Prior to today's session, the Boral share price had tumbled 6.8% since the final close of 2021.

It's now down just 2.5% over that time frame. Though, it's still fallen 24% over the last 6 months.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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