'Deadliest' attack in Afghanistan
"This suicide attack was the work of the Taleban," said Governor Assadullah Khalid, adding the death toll may rise.
Southern Afghanistan is a Taleban stronghold and last week the Kandahar governor himself was the target of an attempt on his life.
The Taleban have not claimed responsibility for the blast, but it bears all their hallmarks, says the BBC's Jon Brain in the Afghan capital.
Among those killed was Abdul Hakim, a local police chief fiercely opposed to the Taleban who is thought to have been the target of the attack.
Body parts
Excitement was mounting among the 500-strong, male-only crowd when the huge blast struck.
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