By Augustine Anthony
ISLAMABAD (Reuters) - Pakistani investigators conductedtests on Tuesday to try to determine what type of explosiveswere used in a suicide car bombing outside the Danish embassythat killed six people and revived security fears.
Monday's bombing in the capital, Islamabad, followed arelative lull in militant attacks since a new government cameto power after February elections intent on negotiating an endto violence.
The blast will heighten concern about the safety offoreigners in Pakistan.
The attack coincided with a fresh bout of intensespeculation about how long U.S. ally President Pervez Musharrafcan hang onto office as he lacks support from the newgovernment.
Western allies are concerned about prolonged politicalinstability in a nuclear-armed Muslim state that is facinggrowing economic woes.
A team of police and intelligence agents has been set up toinvestigate the blast in an upmarket residential neighbourhoodthat left a three-foot (1 metre) crater in the road and damagedmany houses in the area.
The six people killed were Pakistani and about 25 peoplewere wounded.
"A joint team has been set up and they are interrogatingsome local people, but there have been no arrests," said thepolice officer in charge of the investigation, Mohammad AshrafShah.
"Samples have been sent to the laboratory to determine whattype of explosive was used," he said.
Pakistan's main stock index, battered in recent weeks byworries over political stability including the fate ofPresident Pervez Musharraf, who has been under pressure fromopponents to step down, rose in early trade.
Dealers said stock investors had factored in political riskand were more interested in the continuation ofinvestor-friendly policies. Currency dealers said the blast hadnot affected trade in the rupee
Initial suspicion for the attack has fallen on Islamistmilitants out to attack Denmark over cartoons of the ProphetMohammad that Danish newspapers published in late 2005.
The cartoons, considered blasphemous by Muslims, sparkeddeadly protests and attacks on Danish missions. The embassy inIslamabad was temporarily shut in 2006 after protests and itwas reported to have received threats.
"It seems apparent the attack on the embassy was carriedout by zealots behind the campaign," the News newspaper said,adding that more needed to be done to tackle extremism.
DOUBT
But a security analyst questioned the cartoon link.
"I have a problem connecting it with the cartoons," saidretired Lieutenant General Asad Durrani, the former head of theInter-Services Intelligence agency. "They were such a long timeago and at this time, it doesn't make any sense."
Baitullah Mehsud, a militant chief based on the lawlessAfghan border and blamed for string of attacks, including theassassination of former prime minister Benazir Bhutto onDecember 27, was unlikely to have been behind the attack, hesaid.
Mehsud, is on the verge of striking a peace pact with thegovernment.
"Right now, those people also want this peace deal,"Durrani said. "If there are any other factions that do not wantthis peace process to go on, one can imagine them doing it."
The government's policy to negotiate peace is almostuniversally supported in Pakistan but has raised questions inthe United States and among some of Pakistan's other allies,who fear deals will free up Taliban and al Qaeda militants tointensify their war against the West in Afghanistan and beyond.
In Washington, a White House spokeswoman condemned thebombing and, in an apparent reference to the government'sefforts to negotiate peace, said militants could not be allowedhavens.
"It does serve as a reminder to the government of Pakistanand to all governments that terrorism is real, they cannot beallowed to have safe havens," spokeswoman Dana Perino said.
(Additional reporting by Simon Cameron-Moore and SaharAhmed; Writing by Robert Birsel; Editing by Alex Richardson)