Broad-based profit-taking left Toronto stocks sharply lower Wednesday. The S&P/TSX composite index fell 88.82 points, or 1.11% to close at 7,887.12.

Gold issues plunged 6% on profit-taking as bullion prices retreated in New York. Bema Gold fell 48¢ to $4.37 and Iamgold gave up $1.13, to $9.00. Kinross Gold shed 93¢ to $10.40.

In the materials sector, which fell 3.52%, Inco fell $2.47 to C$46.30, while Cameco slipped $1.84 to $67.10.

Information technology stocks were down 1.2% , energy issues slid 1.01% and health-care stocks were down 0.71%. The only bright spot was the consumer staples sector, which rose slightly.

Shares of Hudson’s Bay Co. rose sharply after an investment firm controlled by an American businessman disclosed it may bid for the retailer. HBC’s stock gained more than 14.5%, rising $1.55 to $12.20.

Maple Leaf Heritage Investments said it had bought 25,000 common shares of HBC, bringing its total holding to over 6.9 million shares or 10.03% of the common shares of Hudson’s Bay Co.

In financial services news, it was reported that New York State Attorney-General Eliot Spitzer is investigating Sun Life Financial’s U.S. mutual fund arm Massachusetts Financial Services.

Spitzer is said to be probing allegations of improper
market-timing trades at MFS and has requested documents and other information from the Boston-based firm.

Spitzer launched a sweeping probe into U.S. fund industry in September

Sun Life shares fell 47¢ to close at $31.47.

In earnings news, printer and publisher Transcontinental Inc., the parent company of Investment Executive said fourth quarter profit surged 18%, and it’s expecting a 6% to 9% gain in fiscal 2004. Transcontinental stock slid five cents to $22.72.

On Wall Street, stocks drifted lower, one day after the blue-chip Dow briefly topped the 10,000 level.

The Dow Jones industrial average dipped 9.27 points to 9,914.15. The S&P 500 slipped 3.23 points to 1,056.95. The tech-heavy Nasdaq composite index fell 12.13 points to 1,896.19.