By Ahmed Ali Amir

MORONI, June 14 (Reuters) - Residents of a rebellious Comorian island feared more fighting on Thursday after local authorities concluded elections held in defiance of the African Union and the coup-prone archipelago's federal government.

Mohamed Bacar, a former Anjouan leader, was sworn in as its president on Thursday and vowed to continue defying what he said had been a decade of discrimination against the island.

His forces killed two federal soldiers in May and police shot and wounded three civilians last week. On Wednesday, the national government said it was considering military action.

One Anjouan resident, Nahari Salim, said she was taking no chances and not leaving her home.

"I am not going out because there are rumours of a military landing," the 25-year-old told Reuters by telephone.

Anjouan went ahead with Sunday's polls despite the federal government postponing them for a week due to security concerns.

Residents said its main town Mutsamudu was tense and its marketplaces almost abandoned.

"People have been waiting for something to happen since yesterday," said local election observer Ahmed Mohamed Allaoui.

Despite a boycott by Anjouan's five other candidates and non-recognition by the international community, the island inaugurated Bacar on Thursday as its president.

"We defied both an embargo and aggression," he said at the ceremony, apparently referring to Anjouan's 1997 declaration of independence -- which triggered a federal military intervention, fighting and years of political instability.

Comoros' three islands, whose total population is 670,000, retain autonomy via local presidencies and share a rotating national presidency. The archipelago has suffered 19 coups or attempted coups since independence from France in 1975.

First settled by Arab seafarers 1,000 years ago, Comoros became a haven for pirates pillaging ships across the Indian Ocean. The rocky islands were annexed by France in 1904.

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