mystral: There is an enchanted hammer in one of the crypts in the catacombs, and an enchanted axe in another in the Drowned Nations.
If you do the quests from the Dustmen in the bar, one will have you fighting a necromancer who drops a +1 dagger.
There are a few better magical weapons around Sigil, but they're hidden, or sold at a high price in a few shops.
And of course, Dak'Kon's blade is +2 by default, and Morte can easily get magical teeth from one of the quests in the first area (they're not magical at first, you need to upgrade them from your inventory once Morte is level 5 or higher).
Annah's starting weapons are +1 as well IIRC (and you can find +2 punch daggers in the catacombs too I think).
So overall you should have no trouble getting magical weapons, and frankly I'm not sure how you managed to get to the Lower Ward without finding one, unless you skipped a ton of quests.
Either that or sold them; can't say I blame him, since the whole concept of magic weapons can be somewhat confusing without some prior knowledge of the basic mechanics of D&D.