FTSE 100 up marginally, FTSE 250 up 0.1%
Berkeley hands back gains, down 2%
Saga at record low after poor trading update
Adds company news items, updates share moves throughout
June 19 (Reuters) - London's FTSE 100 weakened as investors dumped airline stocks after a bearish note from HSBC, while CYBG gained after the bank raised its target for cost savings.
British Airways owner IAG ICAG.L fell 4% to a two-and-a-half-year low and easyJet EZJ.L dropped 2.6%. HSBC downgraded the stocks after German airline Lufthansa's profit warning this month.
"We are increasingly cautious towards European airlines ... expect many will follow Lufthansa's profit warning," HSBC analysts wrote. They also forecast weakness in long haul and corporate travel demand in Europe.
The FTSE 100 index .FTSE was 0.3% lower by 0811 GMT, giving up gains from Tuesday along with other European markets after a dovish policy speech by European Central Bank chief Mario Draghi. The FTSE 250 midcap index .FTMC was down 0.2%.
Online takeaway service Just Eat JE.L also slipped 2.4% after a rating cut by UBS.
British American Tobacco BATS.L, Imperial Brands IMB.Land Diageo DGE.L, which get a chunk of their revenue in U.S. dollars,weakened as sterling recovered from five-month lows.
Berkeley BKGH.L fell 2% after reporting a drop in earnings. Rivals Taylor Wimpey TW.L, Persimmon PSN.L and Barratt BDEV.L also fell.
"Today's results reflect the gradual cooling of the company's performance," wrote CMC Markets analyst David Madden.
Among midcaps, Clydesdale and Yorkshire Banking Group CYBGC.L climbed 3.7% after raising its target for cost savings related to its takeover of Virgin Money.
Insurance and tourism firm Saga SAGAG.L slumped 7.3% to a record low after warning that its tour operations were still being undercut by political uncertainty in the UK.
Contractor Kier Group KIE.L jumped 10%, adding to gains from last session, after being hammered this month over a profit warning and restructuring plans.
(Reporting by Muvija M in Bengaluru; editing by Larry King)
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