Russia's ruble strengthened on Thursday and its benchmark stock market hit its highest point all year, but analysts warned that it was premature to talk about a recovery in the country.

The Micex share index reached 1,532 in early London trading, up over 0.5 percent on the day, and more than 20 percent higher than its 2014 low in March. By contrast, all major European benchmarks were trading lower on Thursday morning.

The ruble also strengthened to trade up around 0.5 percent against the dollar, at 46.67.

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The country's stock market and currency have been on a roller-coaster ride since Russia annexed Crimea in March this year. Sanctions imposed by the West and uncertainty surrounding conflict in eastern Ukraine have hit investor sentiment and led to massive outflows from the country.

Volatility in the ruble's price has stabilized since the beginning of the month, however, after Russia's central bank abandoned the ruble's trading band, meaning the currency now floats freely. It also reiterated that it was prepared to further support the ruble in the foreign exchange market if needed.