We present Very Large Telescope (VLT) low-resolution spectroscopy of the neutron star X-ray transient XTE J2123-058 during its quiescent state. Our data reveal the presence of a K7V companion which contributes 77 per cent to the total flux at λ6300 and orbits the neutron star at K2=287+/-12kms-1. Contrary to other soft X-ray transients (SXTs), the Hα emission is almost exactly in antiphase with the velocity curve of the optical companion. Using the light-centre technique we obtain K1=140+/-27kms-1 and hence q=K1/K2=M2/M1=0.49+/-0.10. This, combined with a previous determination of the inclination angle (i=73°+/-4°) yields M1=1.55+/-0.31Msolar and M2=0.76+/-0.22Msolar. M2 agrees well with the observed spectral type. Doppler tomography of the Hα emission shows a non-symmetric accretion disc distribution mimicking that seen in SW Sex stars. Although we find a large systemic velocity of - 110+/-8kms-1 this value is consistent with the galactic rotation velocity at the position of J2123-058, and hence a halo origin. The formation scenario of J2123-058 is still unresolved.