Here’s why these 4 ASX shares are ripping higher today

The strong start to the week looks set to continue with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) up by 0.5% to 5,384 points today.

With Brent oil touching on $US50 per barrel, it will come as little surprise to learn that the energy sector has been a major contributor to today’s gains. That sector alone is up by over 3%, with the materials sector putting on a respectable 2%.

Four shares which will have made their respective shareholders very happy today are as follows:

BHP Billiton Limited (ASX: BHP) shares have climbed over 3% to $19.21 following the rally in the energy and materials sectors and reports that Credit Suisse has slapped a $21.50 price target on the shares. This price target represents 12% upside from the current share price, which would of course be a great return. But the company’s reliance on commodity prices makes this a little too risky in my opinion and I would rather focus on other sectors of the market.

BHP Billiton shares are now up by around 7% in 2016.

BlueScope Steel Limited (ASX: BSL) is having a rare up day, putting on a gain of over 9% to $6. The shares have been under significant selling pressure since Chinese steel production went into overdrive and an explosion occurred at its North Star mill in the United States. It has been estimated that the energy sector accounts for 10% of steel production consumption, so with oil prices bouncing towards $US50 today investors appear to be optimistic about BlueScope’s prospects.

BlueScope Steel’s share price is now up by 71% in the last 12 months.

Gage Roads Brewing Co Limited (ASX: GRB) has spent another day riding high with an 8% increase to 5.4 cents. The rise came as a result of the renewal of its contract with Pinnacle Liquor Group, a subsidiary of Woolworths Limited (ASX: WOW). Being one of its largest customers it was incredibly important that this deal was renewed for the sake of future growth. However, I don’t believe it was ever really in doubt considering Woolworths is the company’s largest shareholder with a 23% stake.

Gage Roads Brewing Co’s share price has risen by almost 15% in the last five days.

Orica Ltd (ASX: ORI) shares have jumped around 3% to $3.80 today. Rises in commodity prices have helped lift the shares of the mining explosives supplier. Any increase in mining activity as a result of rising commodity prices should be a boost to Orica’s struggling business. If the oil price manages to stay close to US$50, then I would expect Orica’s share price to start to rally higher. But this is a big if right now, and not one I would personally gamble on.

Orica’s shareholders are unfortunately still sitting on a decline of 35% in the last 12 months.

If you missed out on these gains today, don't worry. These three shares could be next in line for big gains if you ask me. Better yet, they pay fully franked dividends as well!

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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