Price impact of block trades in the Saudi stock market

► We examine the price impact of block trades in the Saudi stock market using high frequency data. ► We find an asymmetric effect with block sales and block purchases having different impacts. ► We find a direct relationship between the size of trades and the level of information asymmetry. ► The intraday pattern of price impacts forms an inverse J-shaped pattern. ► Traders can profit from acting on overreaction before and price reversals after block trades.