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By Nichiket Sunil

Aug 28 (Reuters) - Australian shares ended slightly higher on Thursday as gains in banks outweighed losses in commodity stocks, while traders digested a slew of corporate results as Australia's earnings season nears its end.

The S&P/ASX 200 index .AXJO closed 0.2% higher at 8,980 points. The benchmark ended 0.3% higher on Wednesday.

The heavyweight financial sector .AXFJ ended up 1.1%, led by the 'Big Four' banks, as investors increased exposure to the relatively stable sector.

Westpac WBC.AX, ANZ ANZ.AX and Commonwealth Bank of Australia CBA.AX advanced between 1.3% and 2.1%, while National Australia Bank NAB.AX added 2.4% after appointing a new chief financial officer.

"Based on the monthly performance, investors are rotating into defensives and income plays, with flows favouring discretionary, real estate and financials - sectors showing more resilient outlooks," said Hebe Chen, a market analyst with Vantage Markets.

Consumer discretionary stocks .AXDJ rose 0.8%, while real estate stocks .AXRE advanced 1%.

On the other hand, energy stocks .AXEJ tumbled 2.4%, tracking weaker oil prices amid expectations for lower U.S. fuel demand. O/R

Mining .AXMM and gold stocks .AXMM also dropped 0.7% and 0.5%, respectively, after investors took profits.

"Traders were just keen to lock in some profit to take advantage of the higher moves in underlying prices such as iron ore and gold," said Tim Waterer, chief market analyst with KCM Trade.

Markets also digested a slew of corporate earnings, including diversified miner South32 S32.AX, whose shares plummeted 7.2% after earnings for the year missed estimates.

Meanwhile, Australian carrier Qantas QAN.AX jumped 9.1% to a record closing high after reporting higher annual profit.

Healthcare stocks .AXHJ ended 1.7% lower after Ramsay Health Care RHC.AX plunged 10.5% on profit drop, while Telix Pharmaceuticals TLX.AX fell 18.8% following a drug application hurdle.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 0.3% higher at 12,903.08 points.

(Reporting by Nichiket Sunil in Bengaluru; Editing by Eileen Soreng)

((Nichiket.Sunil@thomsonreuters.com;))

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