** Shares of Wesfarmers WES.AX set for best weekly performance since mid-August, rising 5.2% so far

** On the day, shares up 3.4% at A$74.74 - highest level in 6 weeks; discretionary stocks .AXDJ gain 2%

** Australian conglomerate said its loss-making online retailer, Catch, will cease to operate as stand-alone entity in Q4

** "The recent increase in competitive intensity in the Australian e-commerce sector has affected Catch's financial performance and growth prospects" - Managing Director

** Expects to record one-off costs associated with wind down and transition of Catch of between A$50 mln ($31.58 mln) and A$60 mln, to be included in 2H results

($1 = 1.5833 Australian dollars)

(Reporting by Sneha Kumar in Bengaluru)

((Sneha.Kumar@thomsonreuters.com;))